Useful tips for everyday
Why do we make the normality assumption in OLS? Note that our assumptions concerning the error term having a zero mean and constant variance, and…
What does a bootstrap confidence interval mean? ‘Bootstrapping’ describes a process which aims to estimate how a statistic’s value will vary when it is calculated…
How do you calculate Bonferroni multiplier? Strategies for Determining the Multiplier Bonferroni Method: With this method we set a family wide error rate and then…
What do you mean by consistency of an estimator? Consistency of an estimator means that as the sample size gets large the estimate gets closer…
How do you choose parametric or nonparametric? If the mean more accurately represents the center of the distribution of your data, and your sample size…
Can confidence intervals be used for non normal distribution? Confidence intervals are typically constructed as-suming normality although non-normally distributed data are a common occurrence in…
What is empirical standard error? An empirical standard error, assuming it has any relation to an empirical distribution function, assumes that the actual sample is…
What is the first-stage F-statistic? The first-stage F-statistic for testing the hypothesis that the instruments are unrelated to the endogenous regressor is a standard measure…
What is the family in GLM? GLM families comprise a link function as well as a mean-variance relationship. For Poisson GLMs, the link function is…
Can probabilities be random variables? A random variable can be either discrete (having specific values) or continuous (any value in a continuous range). The use…