Statistics - Regression Analysis
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A. What does R squared measure in a simple regression, in a multiple regression?
b. What is the purpose of the F test in a multiple regression?
c. What is a qualitative independent variable? How would we/what technique would we use to include a qualitative independent variable in a regression model.
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(a) R^2 is called the Coefficient of Determination. In simple regression, it is a measure of how much of the variation in the dependent variable y can be satisfactorily explained by the variation in the independent variable x. In multiple regression, it is a measure of the amount of variation in the dependent variable y that is attributable to ALL independent variables x1, x2, ... combined. [The 'adjusted R^2'gives an estimate of the population ...
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