2.2.2.0 OBJECTIVE
The main objective of this unit is to provide basic understanding of the topic, properties of regression coefficients and hypothesis testing. As well as how these properties form the basis for prediction and forecasting analyses. Focus will also be on the use of regression analysis to recognise which among the independent variables are related to the dependent variable and to explore the forms of these relationships.
2.2.3.0 MAIN CONTENTS
With the aid of regression analysis, we can obtain estimates of the parameters of a relationship. However, they are only estimates. The next question to ask is, how reliable are they We shall answer this first in general terms, investigating the conditions for unbiasedness and the factors governing their variance. Secondly, building on those conditions for unbiasedness and their variances, we shall develop a means of testing whether a regression estimate is compatible with a specific prior hypothesis concerning the true value of a parameter. Hence, we shall derive a confidence interval for the true value,
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