Calculation and relevance of t-statistic in the event study methodology

Statistical measures, particularly the T-statistic, serve as crucial tools in diverse research domains, including economics, finance, and genetics. The T-statistic plays a pivotal role in quantifying the significance of relationships between variables by comparing sample means to data variability. Its application enables researchers to discern whether observed associations are statistically meaningful or a result of […]

Retention methods in exploratory factor analysis (EFA)

Retention methods in exploratory factor analysis (EFA) involve determining how many factors to retain from the initial factor extraction. The goal is to identify a meaningful and interpretable number of factors that adequately represent the underlying structure of the observed variables. Several common retention methods are used for this purpose: Kaiser’s Criterion: Proposed by Kaiser, […]

How to perform Heteroscedasticity test in STATA for time series data

Heteroskedastic means “differing variance” which comes from the Greek word “hetero” (‘different’) and “skedasis” (‘dispersion’). It refers to the variance of the error terms in a regression model in an independent variable. If heteroscedasticity is present in the data, the variance differs across the values of the explanatory variables and violates the assumption. This will […]

How to Find Degrees of Freedom | Definition & Formula

Degrees of freedom, often represented by v or df, is the number of independent pieces of information used to calculate a statistic. It’s calculated as the sample size minus the number of restrictions. Degrees of freedom are normally reported in brackets beside the test statistic, alongside the results of the statistical test. Example: Degrees of freedomSuppose you randomly sample […]

How to Conduct Regression Analysis Using SPSS

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How to Conduct Regression Analysis – A Tutorial

Assumptions and Diagnostics Tutorial assignment

Assumptions and Diagnostics Tutorial assignment Tutorial 6 (Week 7) Assumptions and Diagnostics Tutorial assignment: What might Ramsey’s RESET test be used for? Ans: The Ramsey’s RESET test is a test to determine the correct functional form. Ramsey’s RESET test is a test of whether the functional form of the regression is appropriate. In other words, […]

How to Write a Thesis Statement

How to Write a Thesis Statement What is a Thesis Statement? Almost all of us—even if we don’t do it consciously—look early in an essay for a one- or two-sentence condensation of the argument or analysis that is to follow. We refer to that condensation as a thesis statement. Why Should Your Essay Contain a […]

Distribution Shapes

Distribution Shapes When one is describing data, it is important to be able to recognize the shapes of the distribution values. In later chapters, you will see that the shape of a distribution also determines the appropriate statistical methods used to analyze the data.A distribution can have many shapes, and one method of analyzing a […]

What is an Ogive – Definition and Examples

What is an Ogive – Definition and Examples The third type of graph that can be used represents the cumulative frequencies for the classes. This type of graph is called the cumulative frequency graph, or ogive. The cumulative frequency is the sum of the frequencies accumulated up to the upper boundary of a class in […]