Part 4 | General Linear Model

// build simple models of relationships //

Part 4 introduces the workhorse of empirical economics: regression analysis. In Part 3, we used regression with a single predictor to test whether patterns in our data were real or just noise. But economic relationships are rarely so simple. The General Linear Model not only lets us test simple hypotheses, but also lets us handle multiple predictors of different types - continuous, categorical, and their interactions - while maintaining our core tools of visualization and residual analysis. These tools are the foundation for modern science.

MiniExams

Part 4 MiniExam tests your understanding of linear modeling concepts including t-tests, regression analysis, indicator variables, and statistical controls.