{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Econ103_spring11_lec4

Econ103_spring11_lec4 - ECON 103 Lecture 4 Simple...

Info icon This preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 103, Lecture 4: Simple Regression I Maria Casanova April 7 (version 0) Maria Casanova Lecture 4
Image of page 1

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

View Full Document Right Arrow Icon
1. Introduction Regression Analysis : The study of the relationship between one variable ( dependent variable ) and one or more other variables ( independent, or explanatory, variables ). Simple Regression: Linear regression model with one regressor Multiple Regression: Linear regression model with more than one regressors Maria Casanova Lecture 4
Image of page 2
1. Introduction What do we use regression analysis for? To estimate the mean or average value of the dependent variable, given the values of the independent variables. What is the average income for people with a high school diploma? What is the average income for people with a college degree? To test a hypothesis implied by economic theory If we increase the price will the quantity demanded fall? To predict, or forecast, the mean value of the dependent variable given the independent variables. What will happen to GDP if we change the interest rate? Maria Casanova Lecture 4
Image of page 3

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

View Full Document Right Arrow Icon
1. Introduction We will go through the steps of regression analysis with a specific example in mind. General question of interest: What is the relationship between class size and education outcomes? Specific question: What is the quantitative effect of increasing (or reducing) class size by one student on standardized test scores for 5 th graders? Maria Casanova Lecture 4
Image of page 4
2. Data Consider data from a random sample of n = 420 California school districts. Variables recorded for each district: Average standardized test score in that district Student-teacher ratio (STR) in that district (that is, average class size) When looking at the relationship between 2 variables, it is always good to start by looking at a scatterplot . Maria Casanova Lecture 4
Image of page 5

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

View Full Document Right Arrow Icon
2. Data Maria Casanova Lecture 4
Image of page 6
3. Regression Line Recall that we are interested in the effect of a one unit increase in STR on test scores.
Image of page 7

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

View Full Document Right Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    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.

    Student Picture

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

  • Left Quote Icon

    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.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    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.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern