Term

Definition
the null hypothesis refers to a general or default position: that there is no relationship between two measured phenomena 


Term

Definition
the pvalue is the probability of obtaining a test statistic at least as extreme as the one that was actually observed, assuming that the null hypothesis is true 


Term

Definition
the mean sums of squares, M.S.S., is found in each case by dividing the sum of squares, SS, by the corresponding degrees of freedom. 


Term
Fstat (excel's significance F) 

Definition
The test statistic, F, is the ratio of the mean sum of squares due to the differences between the group means and that due to the errors. Essentially the pstat for model. 


Term
durbin watson test statistic 

Definition
a test statistic used to detect the presence of autocorrelation (a relationship between values separated from each other by a given time lag) in the residuals (prediction errors) from a regression analysis. 


Term
autocorrelation (aka. serial correlation or crossautocorrelation) 

Definition
he crosscorrelation of a signal with itself at different points in time (that is what the cross stands for). Informally, it is the similarity between observations as a function of the time lag between them. 


Term
Rsquared (aka Coefficient of Determination) 

Definition
In a multiple regression model, the proportion of the total sample variation in the dependent variable that is explained by the independent variable. 


Term

Definition
The percentage change in one variable given a 1% ceteris paribus increase in another variable. 


Term
Error term aka disturbance 

Definition
The variable in a simple or multiple regression equation that contains unobserved factors which affect the dependent variable. The error term may also include measurement errors in the observed dependent or independent variables. Also Disturbance. 


Term
Explained sum of squares (SSE) 

Definition
The total sample variation of the fitted values in a multiple regression model. 


Term
Explanatory variable (aka Control Variable or Covariate or Independent Variable or Predictor Variable or Regressor) 

Definition
regression analysis, a variable that is used to explain variation in the dependent variable. 


Term

Definition
The set of linear equations used to solve for the OLS estimates. 


Term

Definition
The variance of the error term in a multiple regression model. 


Term

Definition
In multiple regression analysis, the number of observations minus the number of estimated parameters. 


Term
dependent variable (aka predictive or explained variable) 

Definition
The variable to be explained in a multiple regression model (and a variety of other models). 


Term

Definition
The estimated values of the dependent variable when the values of the independent variables for each observation are plugged into the OLS regression line. 


Term

Definition
The variance of the error term, given the explanatory variables, is not constant. 


Term

Definition
The errors in a regression model have constant variance conditional on the explanatory variables. 


Term

Definition
1.Regression model is linear, correctly specified, and has an additive error term 2.Error term has a zero population mean 3.All explanatory variables are uncorrelated with the error term 4.Observations of the error term are uncorrelated with each other(no serial correlation) 5.Error term has a constant variance (no heteroskedasticity) 6.No explanatory variable is a perfect linear function of any other explanatory variable(s) (no perfect mulicollinearity) 7.Error term is normally distributed (optional but usually invoked) 


Term
ordinary least squares (OLS) 

Definition
A method for estimating the parameters of a multiple linear regression model. The ordinary least squares estimates are obtained by minimizing the sum of squared residuals. 


Term

Definition
The percentage change in the dependent variable given a oneunit increase in an independent variable. 


Term

Definition
error term satisfying Assumptions 15 


Term
classical normal error term 

Definition

