The Effect - - Describing Relationships (except
10 important questions on The Effect - - Describing Relationships (except
What is a downside with a scatterplot?
They tempt you into thinking that the x axis causes the y axis
Why use the conditional mean and not other features, such as the Standard Deviation?
It helps us weight prediction errors.
How can you describe the relationship between two variables using the conditional mean?
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Through what ways can you condition a continuous variable?
- Us a range of values for the variable we're conditioning on, instead of a single value.
- Use a shape or line to fill the gap with no observations
What is the downside of using ranges for continuous variables when trying to condition them?
number of bins picked is arbitrary, evenly sized bins, difference between top of the one bin and bottom end of next is not representative.
4.4 Line fitting, what does it mean and how does it differ from conditional means?
What are some benefits of the line fitting approach?
- It gives you conditional mean of Y for any value of X we can think of, as it is a straight line and fills in all the gaps, as opposed to the conditional mean method.
- It lets you cleanly describe the relationship between the variables (if the slope coefficient on X is posititive, then the relation between x and y is positive)
- Results are more precise than when only using local mean data
- The line can easily be extended to include more than one variable
How does OLS work?
It uses the information encoded in the covariance
When is nonlinear regression often used?
4.5 Controlling for a Variable, what does this entail?
One way to take conditional conditional means is with regression, and multivariate regression.
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