Independent study supplementary lecture - March 9 & 31, 2020

Independent study supplementary lecture - March 9 and March 31, 2020
[three-hour lecture]

March 31 - main focus

1. Introduction to multiple linear regression (video). Note the following in particular:

Examples of independent variables that are likely to be correlated with each other, when used together as x variables: (i) return on equity, (ii) return on total assets and (iii) return on net total assets. 

2. Statistics 101: Multiple Linear Regression, Data Preparation (video).

Examining the correlation between independent variables

3. Interpreting Excel regression report (video).

        Re: on R squared (video).

        Re: On P-value (video).

   P-value being 5% in this case.

Another video on probability and likelihood.

Note: for our Excel exercise, the central point is the null hypothesis with b = 0, and the standard deviation is the standard error.

On level of significance (video).

     Also see P-value and the significance test (video).

Note:  if p-value > alpha (level of significance), e.g. p-value at 10%> level of significance at 5%, do not reject the null hypothesis. If p-value < than the level of significance, reject the null hypothesis and accept the alternative hypothesis.

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1. On hypothesis testing - the steps [slideshare]/ [video 1], [video 2].

Exhibit 1: a correlation hypothesis statement

E.g., 
The null hypothesis: There is no correlation between the debt/ equity ratio (x variable) and the p/e ratio (y variable) of banks listed on the HK Stock exchange.


2. On multiple regression formula. [a video] {students may also be interested to refresh their memory on linear regression basics}

3. On correlation and regression analysis.

4. On limitations with correlation analysis.

5. On R squared. [a video on its explanation].

6. On independent and dependent variables. Also see the video on dummy variable. Also on independent, dependent and control variables [video].

Exhibit 2

Exhibit 3

7. On Central limit theorem. [a video on its explanation].

8. On the Simpson's paradox.

9. On standard normal distribution. [a video on its explanation].

10. On the z test. Also see the standard error of the mean [video].

11. On the difference between Z-statistics and t-statistics [video].

12. On P value. [video info.]

13. On 1-tailed/ 2-tailed tests.

14. On Excel regression analysis [video].




References
FB page on correlation analysis.
FB group on independent study e-resources.