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Regression (Best line has overall smallest residuals (to test how good b0…
Regression
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Defs
Suppose we want to measure the effect of household size
(predictor) on the number of cars owned by the household
(dependent variable)
In a regression, b1 or b0 are significant (i.e. null hypothesis
rejected), if and only if, the C=1-alpha interval does not
contain 0.
Mean Square - It gives us a sense of the average degree of variation along the regression line, and the residual.
SS / dof
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Hypothesis Test
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b-0 cause of null hypothesis
dof (n-2)
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ANOVA
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F stat
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