stat 104: section 2 4 oct, 2007 tf: daniel moon. tf daniel moon g2 (a.m. in statistics dept) email:...

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STAT 104: Section 2 4 Oct, 2007 TF: Daniel Moon

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STAT 104: Section 2

4 Oct, 2007

TF: Daniel Moon

TF

Daniel Moon G2 (A.M. in Statistics Dept) Email: [email protected] Office hour: Th. PM 4:10-5:10, 6th Floor, 600 Interest: Quantitative methods in finance I want my section to be interactive and

helpful. Any questions? Feel free to ask…

Agenda of Today

Scatter Plot Correlation Linear Regression Lurking Variable Association vs. Causation

Scatter Plot

Correlation

Example: Stupid H vs. Wise W

Linear Regression

Checking Linear Regression

Lurking Variable

A variable not among the explanatory or response variables that influences the interpretation

From aggregate data Sol: Plot the residuals against time and

other variables that may influence the results

Linear Regression

Linear Regression

Association vs. Causation