Multiple Linear Regression

Flashcards based on lecture notes abou Multiple Linear Regression

Multicollinearity

Correlation between predictor variables. This can confuse t-statistics.

Effect of Multicollinearity

Important variables' effect stolen by others, or insignificance due to mutual effect-stealing.

Interpretations of t-statistics and p-values

These are calculated given all other variables are included in the model, so we interpret as this.

Multiple Regression Goal

To explain the relationship between predictors and response, and predict for new observations.

What does each t-value mean?

Each t-value measures the effect of a particular variable in explaining the response given that all the other variables are already in the model.