Quantitative Analysis for Management, 13/e

Glossary

Adjusted $r^2$

A measure of the explanatory power of a regression model that takes into consideration the number of independent variables in the model.

Binary Variable

See Dummy Variable.

Coefficient of Correlation $\left(r\right)$

A measure of the strength of the relationship between two variables.

Coefficient of Determination $\left(r^2\right)$

The percent of the variability in the dependent variable $\left(Y\right)$ that is explained by the regression equation.

Collinearity

A condition that exists when one independent variable is correlated with another independent variable.

Dependent Variable

The Y variable in a regression model. This is what is being predicted.

Dummy Variable

A variable used to represent a qualitative factor or condition. Dummy variables have values of ...