MTH-416, REGRESSION ANALYSIS Lecture Notes - Lecture 53: Sample Space, Likelihood Ratios In Diagnostic Testing, Null Hypothesis
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This equation can be compared with the normal equations comparison yields the following conclusions: X y x xb in the model y x . Ay is the study variables vector in deviation form. 2ax is the explanatory variable matrix in deviation form. This is the normal equation in terms of deviations. Its solution gives ols of slope coefficients as b. The estimate of the intercept term is obtained in the second step as follows: Now we explain various sums of squares in terms of this model. The expression of the total sum of squares (tss) remains the same as earlier and is given by. Ss res where the sum of squares due to regression is. Ss e e and the sum of squares due to residual is. There are several important questions which can be answered through the test of hypothesis concerning the regression coefficients. Which specific explanatory variables seem to be important? etc.