EC 285 - Ch. 13 - Linear Regression and Correlation
EC 285 - Chapter 13 - Linear Regression and Correlation
Textbook: Introductory Business Statistics 2e (OpenStax), Chapter 13 · Slides: Chapter 13 slides
Worked example: Data Analysis Example (slides)
Covered in class: Tue Nov 24, Thu Nov 26, Tue Dec 1, Thu Dec 3
Goals (from the slides)
- The simple linear regression model Y = b0 + b1 X and least squares estimation
- Measures of variation: SST, SSR, SSE; R-squared as explanatory power; analysis of variance
- Confidence intervals for the regression coefficients; F-test for the slope
- Confidence interval for the average Y given X vs. prediction interval for an individual Y
- Worked example (house price on square feet) in Excel; recognising problems in regression