Statistics Exam Review

These flashcards cover key concepts related to regression, correlation, probability, and statistical significance for exam preparation.

What is the difference between correlation and causation?

Correlation does NOT mean causation.

What is extrapolation?

Using a model outside of its data range, which is BAD and unreliable.

What is an outlier?

An unusual data point that can skew results.

What does a negative slope indicate?

It means that y decreases as x increases.

What is the formula for a residual?

Residual = actual - predicted.

What does a positive residual signify?

It means the model underestimated the actual value.

What is the purpose of a residual plot?

To check if a linear model is appropriate.

What does r² represent in statistics?

It measures the proportion of variation in y explained by x.

What does P(A | B) mean?

The probability of event A occurring given that event B has occurred.

What is the significance level (α)?

The probability of making a Type I error, often set at 0.05.