# Linear Regression

Mind Map by Keith Walker, updated more than 1 year ago
 Created by Keith Walker about 7 years ago
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### Description

Regression Mind Map on Linear Regression, created by Keith Walker on 04/14/2013.

## Resource summary

Linear Regression
1 Assumptions
1.1 Linear relationship between x and y
1.2 Observations are independant
1.3 Residuals are Normally Distributed
1.4 residuals have same variability
1.5 x variable measured without error.
2 Examining b or the slope. ie Null that the true slope is zero. Reject if p<.05
2.1 ANOVA F-ratio (explained & unexplained mean squares)
2.2 b/SE(b) which follows t-distribution on n-2 dof
3 Y = a + bx
3.1 Y = dependant varible
3.2 a = intercept ( value of Y when x = 0)
3.3 b = slope ∑(x-x͞) (y-y͞) / ∑(x-x͞)²
3.4 explanatory variable
4 When we are interested in predicting y from a change in x; or predicting an explanatory variabel from a dependant one.

### Similar

Statistics Vocab
ECO 351 - Business Statistics II - Problem Set 2
ECO 351 - Business Statistics II - Vocabulary and Equations