ECON 2500 Lecture 3: AP ECON 2500 F16 Session 3
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ECON 2500 Full Course Notes
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Ap econ 2500 f16 session 3 sep 26 and 28. Topics covered: cautions about correlation and regression, data analysis for two-way tables. Cautions about correlation and regression (cid:131) predictions (cid:131) residuals and residual plots (cid:131) outliers and influential observations (cid:131) lurking variables (cid:131) correlation and causation. What would we predict the number of new birds to be for just that colony: for colonies with 60% returning, we predict the average number of new birds to be, 31. 9343 - (0. 3040)(60) = 13. 69 birds. Residuals: a regression line describes the overall pattern of a linear relationship between an explanatory variable and a response variable. Deviations from the overall pattern are also important. Residual plots: a residual plot is a scatterplot of the regression residuals against the explanatory variable. Residual plots help us assess the fit of a regression line. Ideally there should be a random scatter around zero: residual patterns suggest deviations from a linear relationship.
