final Flashcards
Regression Analysis:
- What is?
- The ____ and ____ of models used to generate predictions of ______ numeric values.
The construction and evaluation of models used to generate predictions of continuous numeric values.
Regression Analysis:
- What is?
- Complement of classification which generates predictions of ____ values.
Complement of classification which generates predictions of nominal values.
Regression Analysis:
- What is?
- Predictor variables may be either _____ or _____.
Predictor variables may be either nominal or numeric.
Multiple Linear Regression (MLR)
- A _____ _____ to model construction that typically uses the Ordinary Least Squares (OLS) method to generate _____ .
Multiple Linear Regression (MLR)
- A statistical approach to model construction that typically uses the Ordinary Least Squares (OLS) method to generate estimates.
Multiple Linear Regression (MLR)
- Widely used by _____
Multiple Linear Regression (MLR)
- Widely used by statisticians
Multiple Linear Regression (MLR)
- What you learned in your _____ or econometrics course
Multiple Linear Regression (MLR)
- What you learned in your statistics or econometrics course
Multiple Linear Regression (MLR)
- Contributions of individual predictors are _____ .
Multiple Linear Regression (MLR)
- Contributions of individual predictors are additive.
Multiple Linear Regression (MLR)
- Not designed to _____ predictor _____ .
Multiple Linear Regression (MLR)
- Not designed to detect predictor interactions.
b0 is the intercept
◦It is the predicted value of _____ when _____ is _____
◦The intercept is shared by_____ _____ (there is only one)
b0 is the intercept
◦It is the predicted value of Y when X is zero
◦The intercept is shared by all cases (there is only one)
b1 is the slope for X
◦It is the change in Y for every _____ _____ change in X
◦The _____ is shared by all cases (there is only one)
b1 is the slope for X
◦It is the change in Y for every 1 unit change in X◦The slope is shared by all cases (there is only one)
e is the residual
◦It is the difference between the _____ _____ and the _____ _____
◦Each case has a _____ _____
e is the residual
◦It is the difference between the observed Y and the predicted Y
◦Each case has a different residual
Basic MLR Construction
- Ordinary Least Squares regression picks the _____ for the best _____ line by minimizing the _____ of the _____ _____ (sum of the squared vertical deviations from the line)
◦In essence, this minimizes the extent to which the line does not run through the data
Basic MLR Construction
- Ordinary Least Squares regression picks the equation for the best fitting line by minimizing the sum of the squared residuals (sum of the squared vertical deviations from the line)
◦In essence, this minimizes the extent to which the line does not run through the data
Basic MLR Construction
- Another name for OLS is the least _____ _____
◦You can imagine that there are other criteria we could use for picking the best _____ _____
Basic MLR Construction
- Another name Basic MLR Construction
- Another name for OLS is the least squares criterion
◦You can imagine that there are other criteria we could use for picking the best fitting linefor OLS is the least squares criterion◦You can imagine that there are other criteria we could use for picking the best fitting line
Basic MLR Construction
- To perform an OLS regression you must have:
◦1 _____ _____ (_____ ) _____
◦1 _____ _____ _____ _____
◦Continuous variables
◦Categorical Variables
◦Require special coding
◦Interactions
◦Coded using variable products
◦Non linear predictors
◦Coded using squares, cubes, etc.
Basic MLR Construction
- To perform an OLS regression you must have:
◦1 continuous target (dependent) variable
◦1 or more independent variables
◦Continuous variables
◦Categorical Variables
◦Require special coding
◦Interactions
◦Coded using variable products
◦Non linear predictors
◦Coded using squares, cubes, etc.Using Categorical Predictors
- Categorical predictors require _____ _____ _____ _____ _____ _____ _____
Using Categorical Predictors
- Categorical predictors require dummy codes expressed as 0 or 1
