Homework 2

1. Linear Regression

1.1. If the x axis and the y axis move towards the positive side, there is a positive relationship

1.2. If the x axis increases and the y axis decreases, there is a negative relationship

1.3. Errors

1.3.1. Minimize the errors, make them as small as possible

1.4. Estimated Grace

1.4.1. Positive Relationship: y= b0 + b1x, b0 is the y axis, b1 is the slope, x independent variable and y is the dependent variable

1.4.2. Negative Relationship: y= b0 - b1x, b0 is the y axis, b1 is the slope, x is the independent variable and y is the dependent variable

1.4.3. Dependent Variable:

1.4.3.1. Outcome

1.4.4. Independent Variable

1.4.4.1. What we change, manipulate, control

2. Statistics can be misleading

2.1. Conditional Variable / Lurking Variable

2.1.1. A hidden, additional factor that significantly influences results

2.2. Simpson´s Paradox

2.2.1. Where the same set of data can appear to show opposite trends, depending on how it`s group

2.3. Statistics are persuasive

3. Least Square Line

3.1. y = mx + b