Exam 3 Math Formulas

Y^ =a+b1 X 1 +b 2 X 2 +…+ bk X k Y ¿ Y^ +e

b−hypothesized β
t-stat = SE ( b )
DF, t-test = n – 1 – k

Confidence interval: b ± t × SE ( b )
¿

Cov( X 1 , Y )
b1 = Var (X ) [For simple regression]
1

Cov(X,Y) =
∑ ( X i − X́ )( Y i −Ý ) Corr(X,Y) =
Cov( X ,Y )
( n−1 ) SD ( X )∗SD ( Y )

Regression SS
2
Residual SS = ∑ ( Y i−Y^ i ) Regression SS = ∑ ( Y^ i−Ý )
2
R 2=
Total SS

Total SS = Residual SS + Regression SS

Regression SS
Regression Mean Square = Regression DF DF, regression = k

Residual SS
Residual Mean Square = Residual DF DF, residual = n – 1  k

Regression MS
F-stat = Residual MS DF = k, n – 1 – k

Residual SS / DF Resid
Adjusted R2 = 1 − Total SS /DF Total
DF, total = n – 1