Lesson 9 of 9 · All lessons in this module
- The regression model and least squares
- Interpreting coefficients, fitted values and residuals
- The four assumptions and residual plotsVideo lesson
- Sums of squares, \(R^2\), the ANOVA table and the SEEVideo lesson
- Testing the slope: t-test, correlation test and F-testVideo lesson
- Intercept tests, indicator variables and p-values
- Forecasts and prediction intervals
- Functional forms: log-lin, lin-log and log-logVideo lesson
- Integrated cases: reading a full regression printout
Lesson 9 of 9 · 16 min
Integrated cases: reading a full regression printout
A regression printout holds every number you need for fit, significance, forecasting and risk; the case is to find the right cell, convert between them, and avoid the labels that look alike.
In short
- From R² and the sign of the slope get the correlation: , with the sign of the slope. 'Multiple R' on a printout is , not .
- Two 'standard errors' sit on a printout: the SEE (, in Y units) in the regression statistics, and the standard error of each coefficient in the coefficient table.
- With one predictor, for the slope, and 'Significance F' equals the slope's p-value. Check that SSR + SSE = SST and the mean squares are SS ÷ df.
- Test the slope against any hypothesised value with ; the printout's t-statistic tests against zero only.
- In log-lin and log-log forms, convert slopes exactly: in a log-lin model; the approximation is good only when it is small.
Unlock this lesson free for 7 days
Create a free account to get 7 days free: every lesson, video and flashcard, and the question bank. No card needed.