Download as PDF, PPTX
Uploaded byJoshua Kim
PDF, PPTX756 views
Presentation
Multiple regression analysis allows modeling of a dependent variable (y) as a function of multiple independent variables (x1, x2,...xk). The model takes the form y = β0 + β1x1 + β2x2 +...+ βkxk + u. For classical hypothesis testing of the coefficients (β1, β2,...βk), the model assumes u is independent of the x's and normally distributed. The t-test can be used to test hypotheses about individual coefficients, such as H0: βj = 0, while the F-test allows jointly testing hypotheses about multiple coefficients, such as exclusion restrictions that several coefficients equal zero. P-values indicate the probability of observing test statistics at least
