Linear Regression with One Regressor (FRM Part 1 2023 – Book 2 – Chapter 6)

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After completing this reading, you should be able to:
- Explain how regression analysis in econometrics measures the relationship between dependent and independent variables.
- Interpret a population regression function, regression coefficients, parameters, slope, intercept, and the error term.
- Interpret a sample regression function, regression coefficients, parameters, slope, intercept, and the error term.
- Describe the key properties of a linear regression.
- Define an ordinary least squares (OLS) regression and calculate the intercept and slope of the regression.
- Describe the method and three key assumptions of OLS for estimation of parameters.
- Summarize the benefits of using OLS estimators.
- Describe the properties of OLS estimators and their sampling distributions, and explain the properties of consistent estimators in general.
- Interpret the explained sum of squares, the total sum of squares, the residual sum of squares, the standard error of the regression, and the regression R2.
- Interpret the results of an OLS regression.

0:00 Introduction
1:22 Learning Objectives
2:29 What is Regression Analysis?
3:53 Scatter Plot
5:31 Simple Linear Regression Model
8:15 Error Term
9:31 Ordinary Least Squares (OLS) Intercept and Slope of the Regression
10:48 OLS Assumptions
12:53 Ordinary Least Squares (OLS) An Example
14:22 Benefits of using OLS estimators
20:25 Coefficient of Correlation
22:04 Standard Error of the Regressor
23:05 Book 2 - Quantitative Analysis Chapter 5

[rohithrajesh]

Thank you so much for your efforts sir.

[ricpue]

Great class professor! Thanks you so much for putting together these series of learning lessons. I was struggling trying to understand the concepts for my Econometric class. Your explanation is simple and well supported.

[ma.deniellecormanes]

great help professor! thank you for imparting your knowledge the best way possible to comprehend.

[UniverseGames]

Nice explanation. I have one question here- 8:01 minutes; you show slope and intercept for a certain point y= beta0 +Beta1 x. If I change that point to another place, like shift one point to another then what will be our that (X2, y2) = ? And line equation for that shifted line