CROSSTABULATIONS
In this section we will be focusing our attention on a technique frequently used in analyzing survey
results, cross tabulation. The purpose of cross tabulation is to determine if two variables are
independent or whether there is a relatio
Multiple Regression
Introduction
In general, many variables could help
explain the dependent variable Y.
Simple Linear Regression
wage = 0 + 1education +
Other independent variables (factors) that
could help explain wage?
Multiple Regression
wage = 0
Multiple Regression Assignment 2
Use the data in HOUSE.SF to estimate the model
price = 0 + 1sqft + 2bed + ,
where price is the house price measured in 10,000 dollars and sqft is the square footage
of the house in hundreds of square feet. Perform multiple
Multiple Linear Regression
Referring back to the Pinkham data, suppose you decided that ADVERTt contained
information about SALESt that lagged value of SALESt (i.e. SALESt-1) did not, and vice
versa, and that you wished to regress SALESt on both ADVERTt a
Key to Multiple Regression Assignment 2
1. price-hat = -15.4038 + 3.52674 x sqft + 7.64828 x bed
2. 7.64828 x 10,000 = $76,482.8
3. 3.52674 x 1.4 x 10,000 + 7.64828 x 10,000 = $125,857.2
Note: For 140 square feet, plug in 1.4 into the estimated regression
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Databases selected: Multiple databases.
Leaders: The data deluge;
Anonymous. T he Economist. London: Feb 27, 2010. Vol. 394, Iss. 8671; pg. 11
Abstract (Su
Random Walk
Most economic and financial data are not
random but look misleadingly predictable
Examples
How to reveal the hidden randomness?
Differencing
X t = X t-1 + t
(X t - X t-1) =
t
By differencing (X t - X t-1) or finding the
changes of X t ,