R Squared And Violations Of Clrm Flashcards Preview

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Flashcards in R Squared And Violations Of Clrm Deck (8)
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1
Q

R squared

A

Goodness of fit- how well the regression fits the data points

2
Q

Adjusted r squared

A

Takes info accounting a higher r squared if more variables have been added
So adjusted r squared falls if more variables are added

3
Q

Violation- errors have mean zero

A

Only true if there’s a constant teen in regression so it’s fits data better

4
Q

Violation- variance in errors is constant

A

Homescadacity isn’t true if there’s patterns in the errors

5
Q

Test for heteroscedacity

A

Whites test- checks for a pattern between errors

6
Q

Violation- errors normally distributed

A

Test coefficient skewness- berd jarque

To see if curve is skewed

7
Q

Violation- correlation between errors

A

Multicolinerity
E.g if x3= 2x2

R squared will be high
Solution- collect more data
Don’t remove important variables- bias

8
Q

Violation- no pattern between errors

A

Test for autocorrelation Detect- durbin Watson test- assumes errors are autocorrelated
Patterns in residuals could be positive - curve or negative- straight jumps through x