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Basic Linear Regression Description.md

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OLS Regression Summary

OLS Regression

The depending variable is Internet use rate (IUP), the explanatory variable is Income per person (IPP). The linear regression model is: y = 35.1215 + x1 * IPPDeviationToMean. When using IPP instead of IPPDeviationToMean, the scatterplot in the section below reveals to be similar.

"The p-value for each term tests the null hypothesis that the coefficient is equal to zero (no effect). A low p-value (< 0.05) indicates that you can reject the null hypothesis. In other words, a predictor that has a low p-value is likely to be a meaningful addition to your model because changes in the predictor's value are related to changes in the response variable." (Source: http://blog.minitab.com) The p-value for IPP is 0.000, which means it is statistically significant and can be used in the linear regression model.

Scatterplot for the association between Income per person (IPP) and Internet use rate (IUR)

Scatterplot

The scatterplot shows that a linear curve might not be the most capable solution to describe the given data. A polynomial regression might fit better here.

Others

The mean of Income per person value, by considering all countries with given values is 8097.816446139661