ch4 - Introduction to Linear Regression (SW Chapter 4) The...

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4-1 Introduction to Linear Regression (SW Chapter 4) The class size/test score policy question: What is the effect on test scores of reducing STR by one student/class? Object of policy interest: Test score STR This is the slope of the line relating test score and STR
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4-2 This suggests that we want to draw a line through the Test Score v. STR scatterplot – but how?
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4-3 Some Notation and Terminology (Sections 4.1 and 4.2) The population regression line : E ( Test Score | STR ) = β 0 + 1 STR 1 = slope of population regression line = Test score STR = change in test score for a unit change in STR Why are 0 and 1 “population” parameters ? We would like to know the population value of 1 . We don’t know 1 , so must estimate it using data.
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4-4 How can we estimate β 0 and 1 from data? Recall that Y was the least squares estimator of µ Y : Y solves, 2 1 min ( ) n mi i Ym = By analogy, we will focus on the least squares (“ ordinary least squares ” or “ OLS ”) estimator of the
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ch4 - Introduction to Linear Regression (SW Chapter 4) The...

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