Question

2 pts Question 4 In the classical regression model we maximize the sum of the squared errors. O True False 2 pts D Question 5 The terms coefficients of determination and R-square are synonyms, measuring how well a regression model fits the data. O True False 2 pts Question 6 Student's t-statistic is calculated as the ratio of an estimated coefficient divided by its standard error. True False

Answer 1

4. False

In classical linear regression model we minimise the sum of squares errors while taking that the mean error is equal to zero.

5. True

The terms coefficient of determinants and R-square are synonyms. It is a statistical measure measuring how well the data fits the model. If R-square is equal to zero it means that the dependent variable cannot be measured from the independent variables.

6. True

T-statistic is used to find evidence of significance between population means. It is the coefficient estimate divided by the standard error. We use t-statistic when we have small sample size or we do not know the population standard deviation.