Regression Analysis and Econometrics

This flashcard set covers key concepts from regression analysis and econometrics, focusing on definitions and explanations relevant to the lecture notes.

Dependent Variable

The variable that is being predicted or explained in a regression analysis.

Independent Variable

The variables that are used to predict or explain the dependent variable.

Holding Constant

A method used in regression analysis to isolate the effect of one variable by controlling for other variables.

Estimated Coefficient

A number that represents the strength and direction of the relationship between an independent variable and the dependent variable in a regression.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a false positive.

R-squared

A statistical measure that represents the proportion of the variance for a dependent variable that's explained by independent variables in a regression model.

Serial Correlation

A situation in regression analysis where the residuals (errors) are correlated across time or observations.

Causation

The act of causing something to happen, often assessed in econometrics to determine if one variable affects another.

Dummy Variable

A variable used in regression analysis to represent categorical data, where categories are represented by 0s and 1s.

Regression Analysis

A statistical process for estimating the relationships among variables, particularly to understand how the dependent variable changes as independent variables change.