POLS30040 Lecture Notes - Lecture 15: Multicollinearity, Central Limit Theorem, Dependent And Independent Variables
6 Dec 2016
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Document Summary
Create a car that was concerned about high college mileage and low environmental footprint. Computer put in car that measures emissions. Vw put in a program that recognized when the car was being tested. Kept testing the vw cars because wasn"t abiding by the central limit theorem. Calculated that there were 60 deaths as a result of these excess emissions. How close are we to the actual mean of the population. Positive value means they move in the same direction. Negative means they move in the opposite direction. Multiple variable regression is between more than two variables. Change in y for every 1 unit change in x. Probability that the true population coefficient is 0. Common levels are 1, 5, and 10 percent. 99% chance that the result is not due to chance. Adds levels of certainty to standard error. Does not tell us causality (correlations only) You have to avoid biases in omitted variables.
