Linear and Non-Linear Models
The u in the equation y=b0+b1+...bkxk+u
What is the error term?
The assumption that states "The parameters we are estimating using the OLS method must be themselves linear."
What is the Linearity Assumption?
Properties that are not defined for a particular
sample size; rather, they are defined as the sample size grows without bound.
What are asymptotic properties?
The command for running a regression on a DV and IVs.
What is reg or regression?
Mathematical models used to capture decreasing and increasing marginal effects.
What are quadratic functions?
The assumption that states "Our data must have been randomly sampled from the population."
What is the Random Assumption?
The minimal requirement for an estimator that assumes as the sample size tends to infinity, the distribution of of the sample will collapse to a single point.
What is consistency?
The command to quickly check how a variable is distributed.
What is inspect or hist?
The test that can be run to determine if a quadratic function is statically significant.
What is a T-test?
The assumption that states "The regressors being calculated aren’t perfectly correlated with each other."
What is the Non-Collinearity Assumption?
The central limit theorem helps us conclude that with a large enough sample size a distribution will satisfy this.
What is asymptotic normality?
Command to delete the data loaded in your Stata session.
The test that can be run to determine if an interaction term is statically significant.
What is a T-test?
The assumption that states "The regressors aren’t correlated with the error term"
What is the Exogeneity or Zero Conditional Mean Assumption?
When an independent variable is correlated to the error term it can produce this.
What is asymptotic bias or inconsistency?
Command to delete all variables except the ones you specify in Stata and command to delete a variable you specify.
What is keep and drop?
The type of coefficient we can change our OLS equation into in order to standardize the variables.
What are standardized coefficients or beta coefficients?
The assumption that states "No matter what the values of our regressors might be, the error of the variance is constant."
What is the Homoscedasticity assumption?
The acronym to remember how to determine if an OLS can be described as efficient. Also works for asymptotically efficient.
What is BLUE? Best, Linear, Unbiased, Estimator
The value that represents how much the IVs in a regression explain the variation in the DV, adjusted for the number of variables.
What is Adjusted R squared?