1_ Regression_Overview

# 1_ Regression_Overview - Research Methods in Economics ECO...

This preview shows pages 1–3. Sign up to view the full content.

Research Methods in Economics . ECO 4451 Student Lecture Notes 1 Research Methods in Economics ECO 4451 Research Methods in Economics Regression Overview 3 Topics Basic concepts Use OLS when dependent variable is continuous Two-variable regression model Multiple regression model Binary variables Nonlinear relationship 4 Scatter Plots and Correlation A scatter plot (or scatter diagram) is used to show the relationship between two variables Correlation analysis is used to measure strength of the association (linear relationship) between two variables Only concerned with strength of the relationship No causal effect is implied 5 Scatter Plot Examples y x y x y y x x Linear relationships Nonlinear relationships 6 Scatter Plot Examples y x y x y y x x Strong relationships Weak relationships (continued)

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

View Full Document
Research Methods in Economics . ECO 4451 Student Lecture Notes 2 7 Scatter Plot Examples y x y x No relationship (continued) 8 Introduction to Regression Analysis Regression analysis is used to: Predict the value of a dependent variable based on the value of at least one independent variable Explain the impact of changes in an independent variable on the dependent variable Dependent variable: the variable we wish to explain Independent variable: the variable used to explain the dependent variable regressor, covariate, predictor 9 Simple Linear Regression Model Only one
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 09/09/2011 for the course ECON 4451 taught by Professor Richardhofler during the Fall '11 term at University of Central Florida.

### Page1 / 5

1_ Regression_Overview - Research Methods in Economics ECO...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online