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Slides Module 4 Lesson 1

The document discusses mean-centering variables in linear regression. Mean-centering involves subtracting the mean from each value of a variable, redefining the zero point. This is done to change the interpretation of regression coefficients. Mean-centering X variables depends on the type of interpretation desired from the regression analysis. The document also notes that regression shows correlation but does not prove causation between variables like height and weight.

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59 views

Slides Module 4 Lesson 1

The document discusses mean-centering variables in linear regression. Mean-centering involves subtracting the mean from each value of a variable, redefining the zero point. This is done to change the interpretation of regression coefficients. Mean-centering X variables depends on the type of interpretation desired from the regression analysis. The document also notes that regression shows correlation but does not prove causation between variables like height and weight.

Uploaded by

padma
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Linear Regression for Business Statistics

Mean-Centering of Variables. (Height and Weight.xlsx)


Linear Regression for Business Statistics
Mean-Centering of Variables. (Height and Weight.xlsx)
Linear Regression for Business Statistics
Mean-Centering of Variables. (Height and Weight.xlsx)
Linear Regression for Business Statistics
Mean-Centering of Variables. (Height and Weight.xlsx)
Linear Regression for Business Statistics
Mean-Centering of Variables. (Height and Weight.xlsx)
Linear Regression for Business Statistics
Mean-Centering of Variables. (Height and Weight.xlsx)
Linear Regression for Business Statistics
Mean-Centering of Variables. (Height and Weight.xlsx)
Linear Regression for Business Statistics
Mean-Centering of Variables. (Height and Weight.xlsx)
Linear Regression for Business Statistics
Mean-Centering of Variables. (Height and Weight.xlsx)
Linear Regression for Business Statistics
Mean-Centering of Variables. (Height and Weight.xlsx)
Linear Regression for Business Statistics
Mean-Centering of Variables. (Height and Weight.xlsx)

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Linear Regression for Business Statistics
Regression does not imply causation.

 Regression by itself does not establish ‘causation’.

 Regression is essentially a correlation technique.

 Some additional requirements are needed to interpret this


correlation as causation.

 Wrong to say, ‘Height causes Weight’.


Linear Regression for Business Statistics
Regression does not imply causation.

 Regression by itself does not establish ‘causation’.

 Regression is essentially a correlation technique.

 Some additional requirements are needed to interpret this


correlation as causation.

 Wrong to say, ‘Height causes Weight’.


Linear Regression for Business Statistics
Regression does not imply causation.

 Regression by itself does not establish ‘causation’.

 Regression is essentially a correlation technique.

 Some additional requirements are needed to interpret this


correlation as causation.

 Wrong to say, ‘Height causes Weight’.


Linear Regression for Business Statistics
Regression does not imply causation.

 Regression by itself does not establish ‘causation’.

 Regression is essentially a correlation technique.

 Some additional requirements are needed to interpret this


correlation as causation.

 Wrong to say, ‘Height causes Weight’.


Linear Regression for Business Statistics
Regression does not imply causation.

 Regression by itself does not establish ‘causation’.

 Regression is essentially a correlation technique.

 Some additional requirements are needed to interpret this


correlation as causation.

 Wrong to say, ‘Height causes Weight’.


Linear Regression for Business Statistics
Mean-Centering of Variables. (Height and Weight.xlsx)
Linear Regression for Business Statistics
Mean-Centering of Variables. (Height and Weight.xlsx)

 Subtracting the mean from every value of a variable.

 It redefines the zero point for that variable .

 We could also center a variable around some value other than the
mean.
Linear Regression for Business Statistics
Mean-Centering of Variables. (Height and Weight.xlsx)

 Subtracting the mean from every value of a variable.

 It redefines the zero point for that variable .

 We could also center a variable around some value other than the
mean.
Linear Regression for Business Statistics
Mean-Centering of Variables. (Height and Weight.xlsx)

 Subtracting the mean from every value of a variable.

 It redefines the zero point for that variable .

 We could also center a variable around some value other than the
mean.
Linear Regression for Business Statistics
Mean-Centering of Variables. (Height and Weight.xlsx)

 Subtracting the mean from every value of a variable.

 It redefines the zero point for that variable .

 We could also center a variable around some value other than the
mean.

When should you mean center your X variables?

 Depends on the kind of interpretations you are looking for.


Linear Regression for Business Statistics
Mean-Centering of Variables. (Height and Weight.xlsx)

 Subtracting the mean from every value of a variable.

 It redefines the zero point for that variable .

 We could also center a variable around some value other than the
mean.

When should you mean center your X variables?

 Depends on the kind of interpretations you are looking for.

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