Session 3: Correlation; Regression Modeling (Variable Selection, Nonlinearities)
Correlation
(slides)
Detailed notes
on correlation (recommended, but optional)
Regression Modeling
Variable selection
(slides)
Structural variations (2)
Nonlinearities
(slides)
Per-unit manufacturing costs
Assignment (after Session 3)
Work through the "Real Estate" sample exam (skip question (6) for now).
Sample exam
Email sent out with dataset several days before exam
"Real estate" dataset and description
Exam questions
Exam answers
Exercises
Banner advertising
Boston housing prices
Applications
Examples
(slides) from the
NBER Digest (May 2005)
Domestic terrorism (nonlinearity)
CEO overconfidence (interaction)
Drug abuse (specification bias)
Polling
Market surveys, political and opinion polls
(slides)
A Primer on Polls
Presidential election polls
Summary: The Languages of Estimation and Hypothesis Testing
Summary: Modeling Tricks