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  1. Principles of Model Building

Why bother?

Types of Independent Variable(IV)

Quantitative

Qualitative

Models

1st Order

1 Quantitative IV

' >=2 Quantitative IV

2nd Order

'>2= Quantitative IV

Qualitative

2 IV

1 IV

'>= 3 IV

Both

Quantitative IV

Qualitative IV

  1. Variable Screening Methods

Stepwise Regression

All-Possible-Regressions Selection Procedure

Caveats

  1. Regression Pitfalls

Observational Data V.S Designed Experiments

Deviating from The Assumptions

What are the issues?

Correlated errors

What are the assumptions

biased estimates

heteroskedastic errors

non-normality

Parameter Estimability and Interpretation

Multi-Collinearity

Extrapolation

Variable Transformations

  1. Residual Analysis

Detecting

Lack of Fit

Unequal Variances

Checking Normality Assumptions

Outliers and Identifying Influential Observations

Residual Correlation: Durbin Watson Test

  1. Special Topics

Piecewise Linear Regression

Inverse Prediction

Weighted Least Squares

Logistic Regression

Ridge Regression

Robust Regression

Nonparametric Regression Models