Checklist Regression Analysis

(1) You should be able to spot and interpret intercept

and co-efficients in a regression result.

Example: Demand = A + b(Price) + c (income) + d (xyz)

(2) You should be able to calculate demand given

coefficients and other data.

Example: Demand = 0.5 - 0.5(20) + 0.4 (100) + 0.3 (60)

(3) You should know what is meant by R-Squared.

Example: if it is 0.2 what does this mean? If it increases

to 0.9 what does this imply?

(4) You should know when a result is reliable.

Example: Now if the t-stat of A, b, c and d are 0.5, 0.3,

3.4 and 10, which variables are statistically reliable and
effective?

5) You should know how to interpret coefficient if estimated

demand function is in log linear form.