3.2. Learning Objectives#

Conceptual

After this week, you should be able to:

  • Understand the equation and interpretation of R-squared and the Root-Mean-Square-Error

  • Understand the equation for finding the standard error and how to interpret the significance test on the slope

  • Understand the standard error, t-statistic, and significance level in the regression table.

  • Discuss regression assumptions.

These points will be covered in the lecture.

Python Skills

We will be working with statsmodels in Python again. This week, you will learn to:

  • Explore model assumptions using graphs in Python

  • Find p-value and significance levels on intercept and slope

  • Find R-squared and RMSE and interpret