Lesson 3 Flashcards
What is a conditional distribution?
It tells you how the probabilities change when you account for additional information
What is the best fit line?
A line that traverses as closely to each point as possible
What is the difference between residuals and errors?
- Errors are from the complete dataset and can be estimated.
- Residuals are sample estimates of the errors.
What is the Wald statistic?
It is used to asses whther an estimated parameter is significantly different from a hypothesized value.
What is a confidence interval?
It gives a range of values where the true parameter is likely to fall.
If we repeat the study infinitely, 95% of the CIs will contain the true value.
What does the R2 mean?
It shows the amount of variability explained by the variable
What does the MSE give?
It quatifies the average squared prediction error
What is the RMSE?
The square root of MSE and estimates the magnitude of the expected prediction error.
Why do we do Multiple Linear Regression?
To examine partial effects of predictors.
What is the F statistic?
It shows how significant R2 is from 0.
What is the Ordinary Least Squares (OLS)?
This regression fits the best fit line by minimizing the sum of squares.
What is the difference between a full and a restricted model?
The restricted model is nested in the full model.
