Textbook Notes (375,592)
CA (165,610)
UTSG (10,918)
ECO (485)
ECO220Y1 (37)
Victor Yu (6)
Chapter 7

ECO220Y1 Chapter 7: Ch. 7 - Intro to Linear Regression
Premium

4 Pages
11 Views

Department
Economics
Course Code
ECO220Y1
Professor
Victor Yu

This preview shows page 1. Sign up to view the full 4 pages of the document.
ECO220
May 2018
1
Ch. 7: Introduction to Linear Regression
LO 7.1 The Linear Model
Linear model (line of best fit OR regression line): an equation of a straight line through the
data fit by least squares
3 basic steps of regression analysis
1. Start with some data
2. Fit a model to the data
3. Use the model to predict an estimate of something you would like to know
Explanatory variable (independent variable): the variables used to explain the value of
another variable, usually denoted by x
On the horizontal x-axis
Predicted variable (response/dependent variable): the variable whose value depends on the
value of the explanatory variable usually denoted by y
On the vertical y-axis
Residuals
Predicted value: the prediction for y found for each x-value in the data.
Found by substituting the x-value in the regression equation
Are values on the fitted line
The difference between y and the predicted value (𝑦̂) is called the residual
𝑒=𝑦𝑦̂

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
ECO220 May 2018 Ch. 7: Introduction to Linear Regression LO 7.1 The Linear Model Linear model (line of best fit OR regression line): an equation of a straight line through the data fit by least squares 3 basic steps of regression analysis 1. Start with some data 2. Fit a model to the data 3. Use the model to predict an estimate of something you would like to know Explanatory variable (independent variable): the variables used to explain the value of another variable, usually denoted by x On the horizontal x-axis Predicted variable (response/dependent variable): the variable whose value depends on the value of the explanatory variable usually denoted by y On the vertical y-axis Residuals Predicted value: the prediction for y found for each x-value in the data. Found by substituting the x-value in the regression equation Are values on the fitted line The difference between y and the predicted value () is called the residual = 1
More Less
Unlock Document
Subscribers Only

Only page 1 are available for preview. Some parts have been intentionally blurred.

Unlock Document
Subscribers Only
You're Reading a Preview

Unlock to view full version

Unlock Document
Subscribers Only

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit