Logistic Regression Analysis: Understanding Odds and Probability

Probability and odds measure the same thing: the likelihood or propensity or possibility of a specific outcome. People use the terms odds and probability interchangeably in casual usage, but that is unfortunate. It just creates confusion because they are not equivalent. How Odds and Probability Differ They measure the same thing on different scales. Imagine how confusing it would be […]

The Difference between Logistic and Probit Regression

Both are types of generalized linear models. This means they have this form: Both can be used for modeling the relationship between one or more numerical or categorical predictor variables and a categorical outcome. Both have versions for binary, ordinal, or multinomial categorical outcomes. And each of these requires specific coding of the outcome. For example, in both logistic and […]

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 test time series autocorrelation in STATA

This article shows a testing serial correlation of errors or time series autocorrelation in STATA. An autocorrelation problem arises when error terms in a regression model correlate over time or are dependent on each other. Why test for autocorrelation? It is one of the main assumptions of the OLS estimator according to the Gauss-Markov theorem that in […]

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 […]

Types of Measurement Scales – Nominal, Ordinal, Interval, and Ratio

How variables are categorized, counted, or measured—uses measurement scales, and four common types of scales are used: nominal, ordinal, interval, and ratio. The first level of measurement is called the nominal level of measurement. A sample of college instructors classified according to subject taught (e.g., English, history, psychology, or mathematics) is an example of nominal-level […]