Quant

Question 1

FORMULA: t test using r and n

Answer 1

t = (r√(n-2)) / √(1-r^2 )

Question 2

Y1 = b0 +b1*X1, which is dependent and which is independent variable?

Answer 2

Y is the dependent and X1 is the independent

Question 3

Simple linear regression assumption: does a linear relationship exist btwn dep and ind. variable?

Answer 3

yes

Question 4

Simple linear regression assumption: is the independent variable correlated or uncorrelated with the residuals?

Answer 4

uncorrelated

Question 5

Simple linear regression assumption: is the independent or dependent variable uncorrelated with the residuals?

Answer 5

independent

Question 6

Simple linear regression assumption: what is the expected value of the residual term?

Answer 6

zero

Question 7

is the variance of the residuals term constant or nonconstant for all observations?

Answer 7

constant

Question 8

are the residuals for one obversation to another correlated or not?

Answer 8

residual term is indepndently distirbution and they are not correlated

Question 9

Simple linear regression assumption: is the residual term normally distributed or not?

Answer 9

normallay distributed

Question 10

FORMULA: Confidence interval

Answer 10

predicted intercept + or - (tcritical * standard error)

Question 11

FORMULA: t test given the intercept, stand error and a given level of signif

Answer 11

t = predicted intercept - given level of significance / stand. error

Question 12

FORMULA: SEE

Answer 12

√(SSE )/(n-2)

Question 13

FORMULA: R^2

Answer 13

RSS/ TSS or (TSS-SSE)/TSS because the R-sq represents what IS explained