ECON 203 1st Edition Lecture 19Outline of Last LectureI. Exam Feedback1. Exam Score2. Independent VariablesII. Armani’s Pizza ExampleOutline of Current LectureI. Model Assessment1. R² (Coefficient of Determination)A. Understanding CoefficientB. The graphC. Standard Error of the Estimate2. Armani Pizza ExampleCurrent LectureI. Model Assessment- There are three ways to asses the behavior of the dependent variable1. R² (Coefficient of Determination)- Standard error of the estimate is an important related measure- When we want to measure the strength of the linear relationshipA. Understanding CoefficientSST = SSR + SSEi. SST = Overall variability in ya. Explained in part by: The regression modelb. Remains, in part, unexplained: The errorB. The graphHorizontal line = Average lineRegression LineC. Standard Error of the EstimateThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.How much spread of the data points there areStandard Error of Regression Se = 0 right on the regression line!Se = standard deviation2. Armani Pizza Example- R² = .92807- Se = 28.133- 95% is between
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