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Results tagged with regression
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user 308010
Techniques for analyzing the relationship between one (or more) "dependent" variables and "independent" variables.
2
votes
Definition of a simple linear regression model
If we wish to make sense of the regression model (1.01), then we must make some assumptions about the properties of the error term $u_t$... … And since regression is at its heart about the conditional mean function $E[y_t|x_t]=\beta_0+\beta_1x_t+E[u_t|x_t]$ we need to assume mean-independence $E[u_t|x_t]=E[u_t]=0$ in order to identify the conditional …
- 51
0
votes
Is the dependent variable, $Y$, considered identically distributed in a linear regression model
This is an important question that touches on two points that cannot be reiterated enough:
A probability distribution and a random variable are not the same thing
We need to clear about what we assum …
- 51