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12 Terms

1

Regression Analysis

A statistical method for investigating the relationship between an independent variable and a dependent variable.

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2

Simple Linear Regression

Regression analysis with one independent variable.

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3

Multiple Linear Regression

Regression analysis with more than one independent variable.

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4

Error Term

Represents all variables affecting the dependent variable that are not included as explanatory variables.

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5

Coefficient of Determination (R^2)

A measure of how much of the variation in the regression model is explained by the independent variables.

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6

Hypothesis Testing

Evaluating assumptions about the population parameters using sample data.

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7

Dummy Variables

Variables created to include categorical data into a regression model.

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8

Homoscedasticity

The assumption that the variance of the error term is constant over all observations.

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9

Multicollinearity

Occurs when two or more explanatory variables are highly correlated, making it difficult to isolate their effects.

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10

Log Transformation

A method for making non-linear relationships more linear by applying logarithms.

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11

Moderation Effect

The influence of a third variable that modifies the relationship between two other variables.

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12

Mediation Analysis

Examines whether the effect of an independent variable on a dependent variable is mediated through a third variable.

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