lm3: Simple Linear Regression (Cloze with Theory, Application, Essay, and File Upload)

Theory: Linear regression models are typically estimated by ordinary least squares (OLS). The Gauss-Markov theorem establishes certain optimality properties: Namely, if the errors have expectation zero, constant variance (homoscedastic), no autocorrelation and the regressors are exogenous and not linearly dependent, the OLS estimator is the best linear unbiased estimator (BLUE).

Application: The estimated coefficients along with their significances are reported in the summary of the fitted regression model, showing that x and y are not significantly correlated (at 5% level).

Call:
lm(formula = y ~ x, data = d)

Residuals:
     Min       1Q   Median       3Q      Max 
-0.55258 -0.15907 -0.02757  0.15782  0.74504 

Coefficients:
             Estimate Std. Error t value Pr(>|t|)
(Intercept) -0.007988   0.024256  -0.329    0.743
x           -0.031263   0.045420  -0.688    0.493

Residual standard error: 0.2425 on 98 degrees of freedom
Multiple R-squared:  0.004811,  Adjusted R-squared:  -0.005344 
F-statistic: 0.4738 on 1 and 98 DF,  p-value: 0.4929

Interpretation: Considering the visualization of the data along with the diagnostic plots suggests that the assumptions of the Gauss-Markov theorem are reasonably well fulfilled.

Code: The analysis can be replicated in R using the following code.

## data
d <- read.csv("linreg.csv")
## regression
m <- lm(y ~ x, data = d)
summary(m)
## visualization
plot(y ~ x, data = d)
abline(m)
## diagnostic plots
plot(m)

Theory: Linear regression models are typically estimated by ordinary least squares (OLS). The Gauss-Markov theorem establishes certain optimality properties: Namely, if the errors have expectation zero, constant variance (homoscedastic), no autocorrelation and the regressors are exogenous and not linearly dependent, the OLS estimator is the best linear unbiased estimator (BLUE).

Application: The estimated coefficients along with their significances are reported in the summary of the fitted regression model, showing that x and y are not significantly correlated (at 5% level).

Call:
lm(formula = y ~ x, data = d)

Residuals:
     Min       1Q   Median       3Q      Max 
-0.48440 -0.14690  0.00744  0.14566  0.60770 

Coefficients:
            Estimate Std. Error t value Pr(>|t|)
(Intercept)  0.01374    0.02329   0.590    0.556
x            0.01099    0.03948   0.278    0.781

Residual standard error: 0.2317 on 98 degrees of freedom
Multiple R-squared:  0.0007899, Adjusted R-squared:  -0.009406 
F-statistic: 0.07748 on 1 and 98 DF,  p-value: 0.7813

Interpretation: Considering the visualization of the data along with the diagnostic plots suggests that the assumptions of the Gauss-Markov theorem are reasonably well fulfilled.

Code: The analysis can be replicated in R using the following code.

## data
d <- read.csv("linreg.csv")
## regression
m <- lm(y ~ x, data = d)
summary(m)
## visualization
plot(y ~ x, data = d)
abline(m)
## diagnostic plots
plot(m)

Theory: Linear regression models are typically estimated by ordinary least squares (OLS). The Gauss-Markov theorem establishes certain optimality properties: Namely, if the errors have expectation zero, constant variance (homoscedastic), no autocorrelation and the regressors are exogenous and not linearly dependent, the OLS estimator is the best linear unbiased estimator (BLUE).

Application: The estimated coefficients along with their significances are reported in the summary of the fitted regression model, showing that y decreases significantly with x (at 5% level).

Call:
lm(formula = y ~ x, data = d)

Residuals:
     Min       1Q   Median       3Q      Max 
-0.62441 -0.14064 -0.00358  0.13978  0.54380 

Coefficients:
            Estimate Std. Error t value Pr(>|t|)
(Intercept) -0.00383    0.02331  -0.164     0.87
x           -0.76385    0.03945 -19.362   <2e-16

Residual standard error: 0.2315 on 98 degrees of freedom
Multiple R-squared:  0.7928,    Adjusted R-squared:  0.7907 
F-statistic: 374.9 on 1 and 98 DF,  p-value: < 2.2e-16

Interpretation: Considering the visualization of the data along with the diagnostic plots suggests that the assumptions of the Gauss-Markov theorem are reasonably well fulfilled.

Code: The analysis can be replicated in R using the following code.

## data
d <- read.csv("linreg.csv")
## regression
m <- lm(y ~ x, data = d)
summary(m)
## visualization
plot(y ~ x, data = d)
abline(m)
## diagnostic plots
plot(m)