Exam 2 Flashcards
What is the main assumption of a sample linear regression model?
The relationship between dependent and independent variables is linear.
In simple linear regression, what does the slope of the regression line represent?
The change in the dependent variable for a one-unit change in the independent variable.
What is the objective of the least squares method in simple linear regression?
To minimize the sum of squared differences between observed and predicted values. (residuals)
In the equation Y = B0 + B1X + eY, what does the e/epsilon represent?
The residual or error term.
In multiple linear regression, what is a key difference compared to simple linear regression?
There is more than one independent variable.
What is multicollinearity in multiple linear regression?
When independent variables are highly correlated with each other
How can you reduce multicollinearity in multiple linear regression?
Remove or combine highly correlated independent variables.
In multiple linear regression, what does the adjusted R-squared value represent?
The percentage of total variation explained by the model, adjusted for the number of predictors
When performing multiple linear regression, why is it important to check residual plots?
To check for homoscedasticity and ensure residuals are randomly distributed
In the context of industrial distribution, if we want to predict distribution costs based on distance, product weight, and delivery method, what type of regression would be appropriate?
Multiple Linear Regression
What type of dependent variable is logistic regression used for?
Categorical Variables
In binary logistic regression, what does the odds ratio represent?
The change in odds of the dependent variable being 1 for a one-unit increase in independent variable
In logistic regression, which function is used to transform the linear combination of inputs into a probability?
Sigmoid Function
Which of the following is NOT an assumption of logistic regression?
The residuals must be normally distributed.
What is the role of the activation function in a neuron of an artificial neural network?
To introduce non-linearity into the model and determine if the neuron should be activated.
In a feed-forward neural network, information flows in which direction?
Forward from the input layer to the output layer
In the backpropagation process in an artificial neural network, which of the following is true?
The weights are adjusted to minimize the loss function by calculating gradients
Which of the following is NOT a common activation function used in artificial neural networks?
Softmax
What is logistic regression used for?
Binary values
What are Residuals?
the observed errors associated with estimating the value of the dependent variable using the regression line.
Residual Equation
Actual Y value - Predicted Y value
Standard Residual Equation
residual / standard deviation