CarolineDeng

CheatSheet
AssumptionsfortheRegressionModel

y = o + 1 x +
Choose o and1 tominimizeSSE
SSE=sumofsquaresofresidualerrors
Residual=observedminusexpected

1. E [|x] = 0 Theexpectedvalueoftheerrorgivenxis0.Themeanvalueofyatagiven
xvalueis o + 1 x .
2. v ar[|x] = 2 Thevarianceshouldbeconstantanddoesnotdependonx.
3. normal Thedistributionoftheerrorsshouldbenormal.
4. 1 , ..., n independentofeachotherEacherrorobservationshouldbeindependentofone
another.

Patternedresidualsplotsviolateassumption1.Increasingspreadofresidualsviolates
assumption2.Wecanchecknumber3usingahistogramoftheresidualsoranormalprobability
plot.

t=

1
SE( 1 )

t/2 S E(1 )

CI: 1

Reject H o if |t| > t/2 Weuse(n2)df

Standarderrorof 1 (SE( 1 ))=estimateofsd( 1 )constant

Standarderroroftheregression(s)=estimateofsd( y o 1 x) distancefromreg.line

Atanygivenvalueofx,thetypicalvaluesofyareintherange( o + 1 x) 2 .
Increasingxby1unitisassociatedwithincreasingthemeanvalueofyby 1 units.
Whenx=0,themeanvalueofyis o .

Inthefittedregressionmodel,ifanadhasonemillionplays,whatistherangeoftypicalvalues
forthenumberofclicks?wethentakeaconfidenceintervalandusetheSEcoefofplays
(xvalue).95%ofyvalueswithx=10areexpectedtobewithintherangeof(CI).

Whenweinterprettheestimatedvalueof 1 ,wesayweare95%confidentthatforeach
increaseinx,theexpectednumberofywillincreasebyanamountbetween(CI).

=significancelevelforarandomhypothesistest,if H o istrue,thenP(TypeIerror)=
Pvalue=observedsignificancelevelittellsyouhowstrongtheevidenceisagainst H o .If
H o istrueandweweretorepeattheexperiment,P(teststatatleastasextremeas
observed)=pvalue

AssumptionsforPopulationMean

SEMean(standarderroroftheestimate): SE x =

s
n

Forsamplemeans,weuse(n1)df.REMEMBERINCONTRASTTOREG.
x
t = s/n

Forconfidenceintervals:Ifwerepeatthisexperimentmultipletimes,95%oftheresultswillfall
within(CI).