RegressionModels
simple linear regression Error assumptions :
Y =
Bo + B X + Ei Normal distribution
,
Ho : B
,
= 0 ; Ha : P ,
00 = Residual SE Mean of
O
Parameters : B Bi
., ,
S Independent
R2:% of relationship explained by model Fixed STDEV O
Prediction interval for specific
datapoint : a
confidence interval BAISE : Nonlinear model (exquadratic) :
= BotB , XtBejei (same error assumptions
(
Residual diagnostics :
QQ plot : for validating normality
Residuals us fitted : want mean G want valuesto generally conform
fairly random distribution to the line
Multiple Regression Multicollinearity
Y Bo + B XyBzXz explanatory variables have high correlation
BpXp + Ei
= + 2
--- a
,
same errorassumptions vify =
-R2 (Refrom model X, - allother
,
explanars)
Bovalues are evaluated when holding all others constant vif is dangerous if above 2 5
.
slope
categorical variables Interaction affectthe
in Linear regression together
Dummy variable : Ed desiredcategor
as Model : Y =
Bo + BiX, JBz Dummy Bummy rei
always have n-1 dummies also works w/multiple levels
Model : Bo + Bix, + Badummy ,
....
Budummyn Ei