Podcast
Questions and Answers
What is the total sum of squares (SST) in OLS regression?
What is the total sum of squares (SST) in OLS regression?
- The explained sum of squares (SSE)
- The sum of squared residuals (correct)
- The variation explained by x
- The residual sum of squares (SSR)
If the OLS intercept and slope estimates are multiplied by a constant c, what happens?
If the OLS intercept and slope estimates are multiplied by a constant c, what happens?
- They increase proportionally (correct)
- They remain unchanged
- They become undefined
- They decrease proportionally
What does the residual sum of squares (SSR) represent in OLS regression?
What does the residual sum of squares (SSR) represent in OLS regression?
- The unexplained variation in the dependent variable (correct)
- The fraction of sample variation explained by x
- The explained variation compared to the total variation
- The total variation in the dependent variable
If the independent variable in OLS regression is divided by a constant c, what happens to the OLS slope coefficient?
If the independent variable in OLS regression is divided by a constant c, what happens to the OLS slope coefficient?
What is the interpretation of R-squared in regression analysis?
What is the interpretation of R-squared in regression analysis?
Incorporating nonlinearities, what form is used in the example of a Log Wage Equation?
Incorporating nonlinearities, what form is used in the example of a Log Wage Equation?
What is the purpose of the error term in a regression model?
What is the purpose of the error term in a regression model?
In a regression analysis, what does a residual represent?
In a regression analysis, what does a residual represent?
How are Ordinary Least Squares estimates calculated in a regression model?
How are Ordinary Least Squares estimates calculated in a regression model?
What does it mean if a residual is negative?
What does it mean if a residual is negative?
Why is minimizing the sum of squared residuals important in regression analysis?
Why is minimizing the sum of squared residuals important in regression analysis?
What effect does an outlier have on the sum of squared residuals in a regression model?
What effect does an outlier have on the sum of squared residuals in a regression model?
What does the sum of squared residuals represent in the context of Ordinary Least Squares (OLS)?
What does the sum of squared residuals represent in the context of Ordinary Least Squares (OLS)?
What is the significance of having a sample covariance of zero between regressors and OLS residuals?
What is the significance of having a sample covariance of zero between regressors and OLS residuals?
What is the primary interest in most cases when determining Ordinary Least Squares (OLS) regression estimates?
What is the primary interest in most cases when determining Ordinary Least Squares (OLS) regression estimates?
What does it signify if the OLS regression line underpredicts yi for a given observation?
What does it signify if the OLS regression line underpredicts yi for a given observation?
What does Property 3 of Algebraic Properties of OLS Statistics state?
What does Property 3 of Algebraic Properties of OLS Statistics state?
In terms of OLS, what does it mean if the sample average of the OLS residuals is zero?
In terms of OLS, what does it mean if the sample average of the OLS residuals is zero?
