QMB 3600 Lecture Notes - Lecture 9: South Texas High School For Health Professions, Dependent And Independent Variables

• School: FAU
• Department: Quantitative Methods in Bus
• Course: QMB 3600
• Professor: Evan Jaffe

Document Summary

Highest val you d pay for relia(cid:271)le fore(cid:272)ast?-> ev of pi. Ev of pi= (ev w/pi)- (ev w/o pi) Ev w/pi=(highest val) x prob per situation w/best payoff. Optimistic (maxi-max): best possible outcome w/ best payoff. Efficiency of si= (ev of si/ev of pi) x 100. Variable being predicted, the dependent variable, is the y. Variable being used to predict, the independent variable, is the x. Multiple r- coefficient of correlation: always b/t -1 and +1. Must check sign of slope to see if positive or negative. R squared- coefficient of determination: the proportion of variation in prediction of model explained by independent variables. The percent change in dependent variable explained by independent variable. Second p val rep. the % of statistical doubt. p val of ind var is prob that is happened by chance. Sensitivity analysis: (soa 1 x (prob)) + (soa 2 x( 1-prob))