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13 Cards in this Set
- Front
- Back
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When irrelevant independent variables are added to the model, R^2
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must rise
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When relevant independent variables are added to the model, R^2
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must rise
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When irrelevant independent variables are added to the model, R^2 adjusted
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usually falls
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When relevant independent variables are added to the model, R^2 adjusted
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usually rise
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If a researcher would like to test whether the relationship between an independent variable and the dependent variable is increasing at an increasing or decreasing rate, they should add
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a quadratic term
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Xi^2 is called a
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quadratic term
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(X1*X2) is called a
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interaction term
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The adjusted R2 is adjusted for
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number of regressors
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The p-value is
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the probability of getting the test statistic given the null hypothesis is true
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Type of payment can be Cash, Check, or Credit Card. This type of data is called
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qualitative data
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Expression:
sales= B0+B1(adv1) + B2(North) + B3(West) + Ei Given South is the null state or the omitted category, interpret B2: |
B2 is the difference in mean sales between the North and the South
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If x2 and and x1 are highly correlated, the model has
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multicollinearity
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If X1 and X2 are highly correlated, then X1 can appear
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insignificant when it is actually significant
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