3.8: Polynomial Regression - Class Notes

Contents

Tuesday, November 19, 2019

Overview

This week we will cover non-linear models, which we anticipated last week with an interaction effect between two continuous variables: X1×X2, where the marginal effect of X1→Y is dependent on the value of X2.

We cover two types of nonlinear models. Today, we cover polynomial models, where we include higher-order X variables to explain a non-linear effect. Next class we will cover logarithmic models, which are more frequently used - as well as a few final tests and transformations for multivariate regression before we turn to panel data.

Today, we will spend the first half of class finishing last class’ practice problems (on dummy variables and interaction effects), then I will cover polynomial models. After we finish next class’ lecture, we will do another set of R practice problems, and you will be given HW 5 to work on this material.

Slides

• Lecture Slides

R Practice Problems

We will begin by finishing your work on Last Class’ Practice Problems. Answers are posted there tonight.

Problem Set 4 Due Thursday Nov 21

Problm Set 4 (on classes 3.1-3.5) is due by Thursday November 21.