Econometrics: Changing units of measurement
How changing units of variables affect the estimated regression coefficients and other measures
Ratings 5.00 / 5.00
What You Will Learn!
- Properties of Expected Values, Variance, Covariance
- How changing the unit of the variables affect the regression coefficients (intercept and slope)
- Step by step transformation of regression coefficients, R2 and SER
- Alternative transformation method for Multiple Linear Regression
Description
This Econometrics course covers the concept of Scaling - Changing Units of Measurement.
What is this concept of Scaling?
Think of it in this manner:
Let's say you are working with 2 variables - Weight and Height, where, Weight is measured in Kilograms and Height is measured in inches. When you run a regression of Weight on Height, you get the estimated intercept to be -79.24 and the estimated slope to be 4.16.
Now, if you decide to change the unit of Weight from kilograms to pounds or the unit of Height from inches to centimeter, then how will the estimated intercept and slope change?
And that's exactly what you are going to learn in this course!
Structure of the course:
Quick overview of properties of Expected values, Covariance and Variance. These are the key to understand the maths discussed in this course
Quick look at the formulas
All the math to understand the effect of scaling on estimated intercept, slope, R2, residuals and Standard Error of Regression (SER)
Practice questions to test your understanding
This course comes with:
A 30 day money-back guarantee
Support in the Q&A section - ask me if you get stuck!
I really hope you enjoy this course!
- Shubham
Who Should Attend!
- University Students taking Econometrics at Undergraduate Level