TEST 5 Flashcards
what is TSS
ESS + RSS
what is R2
ESS/TSS or 1 - (RSS/TSS)
R2 can be larger than 1
F
it has to be between 0 and 1
closer R2 is to 1 means the perfect fit the data is
T
if R2 is 0 it means the regression has great explantory power
F
what is Beta is CAOM
relavent measure of stock risk —> volatility
if you want to test if an equation has explantory power what do you use?
F test
what is the F test
(Tss-Rss)/Rss N-2/1
when you compare the test stat eith the critical value. if the test stat exceed the crit you reject the null
true
In multivariate models we can think of the F-test as a test of
the joint hypothesis that all the slope coefficients are equal
to zero.
true
the relationship for a fTEST AND T RATIO holds for multivariate regression equations
false only in bivariate
what is the expression to calculate the coefficient of standard errors
RSS/n-k
