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QBA II
Monroe Baylor QBA II test 1
20
Mathematics
Undergraduate 2
02/11/2010

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Cards

Term
Simple Linear Regression
Definition
analysis of the equational relationship between X and Y.
Term
Slope, ß1
Definition
, has a t distribution which standardizes its value to see if it is significantly different from 0.
Term
Y-Intercept
Definition
, ß0, is not interpreted.
Term
Correlation Coefficient,
Definition
,r, indicates direction and strength of the LINEAR relationship between X and Y.
Term
Coefficient of Determination
Definition
R2, the ratio of explained variation in Y to the total variation.
Term
Standard Error
Definition
will be smaller for better predictive equations.
Term
Correlation analysis
Definition
is the study of the nature and degree of the relationship between variables.
Term
Extrapolation
Definition
is using Xs beyond the range of the given Xs to predict Y. This can cause large errors in prediction.
Term
Relationship of slope to the correlation coefficient
Definition
signs are the same.
Term
Multicollinearity:
Definition
when Xs are highly correlated this gives redundant information.
Term
Heteroscedasticity
Definition
- non-constant variance in the residuals
Term
Outlier
Definition
atypical values in a data set.
Term
Non-linear relationships-
Definition
curvilinear patterns or logarithmic relationships
Term
Multiple regression analysis
Definition
includes one dependent variable and more than one independent.
Term
Stepwise
Definition
tries all combinations of variables and produces the best predictors in order of their predictive power.
Term
Artificially Inflated R-squared
Definition
occurs when there are too many predictors and not enough samples.
Term
Normal plots
Definition
should produce a nearly straight line without outliers.
Term
T distribution vs. F distribution
Definition
: t is used to test the individual coefficients where F tests the overall model.
Term
Residuals are the differences in the observed value of Y at a given X and the predicted value.
Definition
:D
Term
Studentized Residuals
Definition
should fall within +/- 3 in order to be considered normal values.
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