topic08b

# topic08b - --Coefficient of Correlation: YY S SST = XX XY S...

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Topic 8b Linear Regression Measures of Variation 8.3 Assumptions of Linear Regession Model: Linearity (X and mean value of Y have linear relationship) Indepedence of Error ( ε 1 , ε 2 …are independent) Normality of Error ( ε 1, ε 2…are normal) Equal variance (the variance of ε 1, ε 2…are the same) 8.4 Decomposition of Variation of Dependent Variable: SST=SSR+SSE 8.5 Measures of Variation : - Coefficient of determination - Standard Error of Estimation
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Unformatted text preview: --Coefficient of Correlation: YY S SST = XX XY S S SSR 2 = XX XY YY S S S SSE 2 − = ( ) ( ) ( ) ( ) ∑ ∑ ∑ ∑ ∑ ∑ ∑ ∑ ∑ ∑ − = − = − = − = − = − − = n Y Y Y Y S n X X X X S n Y X Y X Y Y X X S i i i YY i i i XX i i i i i i XY 2 2 2 2 2 2 ) ( ) ( 1 r r 2 2 2 ≤ ≤ = = YY XX XY S S S SST SSR 2 ) ˆ ( 2 1 2 − − = − = ∑ = n Y Y n SSE s n i i i 1 r 1-r ≤ ≤ = YY XX XY S S S...
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## This note was uploaded on 09/15/2008 for the course ISMT 111 taught by Professor Wanxuhu during the Fall '08 term at HKUST.

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