# econometrics

## How to Interpret Dummy Variables in Ordinary Least Squares Linear Regression Analysis

Dummy variables, which have non-parametric measurement scales, can be used in specifying linear regression equations. The linear regression equation I’m referring to here is the ordinary least squares (OLS) method. As we already know, most variables are measured on interval and ratio scales in ordinary least squares linear regression equations.

## Coefficient of Determination and How to Interpret it in Linear Regression Analysis

The coefficient of determination in linear regression analysis is crucial in understanding how well the independent variables explain the dependent variable. In linear regression analysis, the coefficient of determination can come in two forms: the coefficient of determination (R square) and the adjusted coefficient of determination (Adjusted R Square).

## Comparing Logistic Regression and Ordinary Least Squares Linear Regression: Key Differences Explained

The analysis of Ordinary Least Squares (OLS) linear regression is most commonly used to estimate the influence of independent variables on a dependent variable. In OLS linear regression analysis, several assumptions must be fulfilled to obtain the best linear unbiased estimator.

## How to Create Statistical Hypotheses in Linear Regression, Correlation Analysis, and T-test

Formulating hypotheses is a crucial step in any research activity. Researchers need to conduct a series of scientifically-based research activities to test these research hypotheses. This series of scientific activities include formulating a research proposal, presenting the proposal in a research proposal seminar to gather feedback, data collection, data analysis, and hypothesis testing to draw …

## How to Interpret the Output of Correlation Analysis | Hypothesis Testing, Sign, Size, and Direction

Correlation analysis is an associative test commonly used by many researchers to understand the relationship between variables. Before discussing how to interpret the results of correlation analysis, it is essential to understand the basic theory of correlation analysis.