Answers

Here are the answers to the preceding questions:

1. Draw a chart of the variables and see whether there is a relationship by seeing whether the data points form a straight line with no scattered data.
2. The difference between the expected values and the results from the linear model.
3. Look in the t-statistics table for the critical value. If the calculated value of the t-statistic is greater than the critical value, we can reject the null hypothesis.
4. The SSE is the difference between the expected results of the training data and the results of the regression model, squared. The SSE is also called the unexplained variation.
5. A positive sign means a direct relationship. A negative sign means an inverse relationship.