Day 1 Class Outline BUSN 212

November 14th 2011.

 

Brief overview of class: In a word, regression analysis.  (Check out the Institute of Business Forecasting and Planning website.) 

(Also could say that the focus of this class is on  multivariate statistical analysis) 

Details: (1) Webpage/Moodle/Syllabus/Course overview, (2) Reading assignment: all of the following: (a) the syllabus, (b) the Leamnson article mentioned in the syllabus, (c) section 7 of chapter 11 and (d) reread course overview. (3) Roster. (4) Group project. Today you form groups and we do a group exercise (5) Daily learning logs and participation cards. 

 

 

Preview of  class Wednesday:  CORRELATION (Problem set #1). 

• Rho, the population correlation coefficient.
• Measures the strength and the direction of the LINEAR relationship between TWO variables.
• Given by the formula Covariance(X,Y)/standard dev(X)*standard dev(Y)
• Always between -1 and +1.
• Estimated by the statistic r.
• Computational Formula for r.
• Finding and interpretting r.
• Examples.  Problems 1-3 of problem set #1.  (Example 1 first)
• Correlation coefficient does NOT pick up nonlinear relationships (tire pressure example)
• Correlation coefficient is sensitive to extreme values (outliers)

 

(If time will also discuss statistical inference. From an estimate of rho, what can we claim about the ACTUAL correlation between two variables.)

 

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