口 Chapter5: Basic Ideas of linear regression the two- variable model
Chapter 5: Basic Ideas of Linear Regression: the Two-Variable Model
The Meaning of Regression The Sample Regression Analysis Function (SRF) The Population Regression The le Special Meaning Function (PRF) of the Term " Linear” Regression Stochastic Specification of the TTwo-Variable versus Population Regression Function(PRF) Multiple Linear Regression The Nature of the Stochastic Estimation of Error Term Parameters
The Population Regression Function(PRF) The Meaning of Regression Analysis Stochastic Specification of the Population Regression Function(PRF) The Nature of the Stochastic Error Term The Sample Regression Function（SRF） The Special Meaning of the Term “Linear” Regression Two –Variable versus Multiple Linear Regression Estimation of Parameters
5.1 The Meaning of Regression Analysis 1. Regression analysis-the study of the relationship between one variable Y(the explained, or dependent variable)and one or more other variables Xxs (explanatory, or independent variables) Y: the explained, or dependent variable X/XS: the explanatory, or independent variables
5.1 The Meaning of Regression Analysis 1.Regression analysis——the study of the relationship between one variable Y (the explained，or dependent variable) and one or more other variables X/Xs (explanatory，or independent variables)． Y: the explained，or dependent variable X/Xs: the explanatory，or independent variables
5.1 The Meaning of Regression Analysis Ms 2.The objective of regression analysis (1 To estimate the mean, or average, value of the dependent variable, given the values of the independent variables (2) To test hypotheses about the nature of the dependence-hypotheses suggested by the underlying economic theory (3) To predict, or forecast, the mean value of the dependent variable, given the values of the independent variable(s)
5.1 The Meaning of Regression Analysis 2.The objective of regression analysis: （1）To estimate the mean，or average， value of the dependent variable，given the values of the independent variables． （2）To test hypotheses about the nature of the dependence-hypotheses suggested by the underlying economic theory． （3）To predict，or forecast，the mean value of the dependent variable，given the values of the independent variable(s)．
5.1 The Meaning of Regression Analysis 03. Note: (1) Regression does not necessarily imply causation. Causality must be justified, or inferred, from the theory that underlies the phenomenon that is tested empiricall (2) (3)
5.1 The Meaning of Regression Analysis 3. Note: (1) Regression does not necessarily imply causation．Causality must be justified， or inferred，from the theory that underlies the phenomenon that is tested empirically． （2） （3）