Module 1.1 Intro to Linear Regression

Question 1

measure of strength of the linear relationship between two variables

Answer 1

correlation coefficient (r)

Question 2

has no unit of measurement

Answer 2

r (correlation coefficient)

Question 3

r (correlation coefficient) =

Answer 3

covariance of X and Y/(std dev of X)*(std dev of Y)

Question 4

what is correlation coefficient bounded by

Answer 4

1 and -1

Question 5

slope coefficient (b-hat 1) =

Answer 5

covariance of X and Y/variance of X

Question 6

represents the value of the dependent variable at the point of intersection of the regression line and the axis of the dependent variable

Answer 6

estimated intercept (b-hat 0)

Question 7

occurs when variance of residuals differ across observations

Answer 7

heteroskedasticity

Question 8

if observations are NOT independent, residuals from model will exhibit what?

Answer 8

serial correlation

Question 9

what are the two necessary assumptions of linear regression analysis?

Answer 9

residuals are normally distributed and constant variance of error term