DRQ 8 Dr. Capps AGEC 317 4 points
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Transcript of DRQ 8 Dr. Capps AGEC 317 4 points
DRQ 8 DR . CAPPS AGEC 317 4 POINTS
①What is the sum of all residuals equal to? (1
point) 0
②How do you interpret these correlation
coefficients?a) -0.001 (1/2 point) a very small
negative correlation or linear association among two variables
b) 0.9 (1/2 point) a very large positive correlation or linear association among two variables
DRQ 8 DR . CAPPS AGEC 317 4 POINTS
①__Principle of Parsimony(definition)___
simple models are generally preferred to
complex models, especially in forecasting (1
point)
②What are two of the four assumptions of a
regression model?a) Constant variance of the error termb) No correlation of the error term at
observations i and jc) No correlation of the error term with any
explanatory variabled) The mean of the error term is equal to 0