April 2nd notes for QMB

# April 2nd notes for QMB - All points not on the line are...

This preview shows pages 1–2. Sign up to view the full content.

April 2 nd notes for QMB *Chi square test of independence - used for 2 categorical variables Null hypothesis (Ho): the 2 categorical variables are independent Alternative hypothesis (Ha): 2 categorical variables are dependent Example: Ho: Smoking and Cancer are independent Ha: Smoking and Cancer are dependent Reject Ho if P-Value is < .05 *Regression Analysis- goes beyond correlation analysis 2 obejectives: 1. Prediction 2. To test for significance of the independent variables Chapter 15 multicollinearily – deals with number (2) objectives Simple linear regression Y=Beta(0)+Beta(1)X+e Beta(0) contant term or Y intercepet Beta(1) is the slope E- is the error Y is the dependent variable X is the independent variable

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: All points not on the line are errors ±erm – Method of least squares E squared= (Y-Beta0-Beta1X) Sum of E squared= to the sum of (y-Beta0-Beta1x) squared Multple Linear regression This is the case where we have one dependent variable (y) and two or more (say 4) independent variables (x1,x2,x3,x4) The model: Y=Beta(0)+Beta(1)X+ Beta(2)X+ Beta(3)X+ Beta(4)X+ e Using the method of least squares we obtain: Y{hat}=b(0)+b(1)X+ b(2)X+ b(3)X+ b(4)X 2 assump±ons for mul±ple regression: 1. The errors (e) are independent and normally distributed 2. The errors have constant variance...
View Full Document

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern