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Prof. Dan Levy Harvard University API-209

advanced Quantitative methods ( API-209 ) Harvard Kennedy School Prof. Dan LevyHarvard University API-209 pick up handout #18 take your seat as soon as possible put your name card on your desk you don t want to appear on the film, please sit in the left wing of the room (facing the front) Poll 1 advanced Quantitative methods ( API-209 ) Harvard Kennedy School Prof. Dan LevyHarvard University API-209 Final Exercise posted o3 options: Targeting Assessment Sierra Leone Poverty Profile and Targeting Honduras Currency Unions oStart early oTeamwork Problem Set 8 oQuestion on Final Exercise 2 advanced Quantitative methods ( API-209 ) Harvard Kennedy School Prof. Dan LevyHarvard University HANDOUT 18 Multiple regression III Various Topics of Fit Standard Error of OLS Estimators Source : Wooldridge (Ch 3), Hughes-Hallett (Math camp handouts) Today we study 2 broad topics related to estimation in the context of multiple regression : oGoodness of fit (the famous R 2 ) oVariance of OLS estimators OF FIT Consider the following terms: 3 advanced Quantitative methods ( API-209 ) Harvard Kennedy School Prof.

Advanced Quantitative Methods (API-209)Harvard Kennedy School Prof. Dan Levy Harvard University Interpretation of R 2 : proportion of the sample variation in y that is explained by the OLS regression line. R 2 can also be shown to equal the squared correlation …

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HANDOUT 18 Multiple Regression III – Various Topics

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Advanced Quantitative Methods (API-209) Harvard Kennedy School Prof. Dan Levy Harvard University 4 Terminology For the purposes of the next section, it will be helpful to think about various R2s, which we define here. Consider the following regression:

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