## Evaluation Metrics – Linear Regression

A conceptual understanding of Linear Regression Analysis is a prerequisite for this article. Thus, we recommend you to visit this link if you need more clarity. Let’s begin! Evaluation Metrics of the Classical Linear Regression Model: Before understanding the metrics to assess model performance, let us understand why do we even need them?  A performance … Read more

## Summary of Discrete Statistical Distributions

A distribution is a statistical function that describes all the possible values and likelihoods that a random variable can take within a given range. (Ref: Statistical Models in Engineering, by Gerald Hahn and Samuel Shapiro, John Wiley and Sons, 1967) Binomial distribution It gives the probability of exactly x successes in n independent trials. Here, the probability … Read more

## Econometrics Basics for Interviews

In this blog, we have tried to explain multicollinearity, autocorrelation, and heteroscedasticity clearly. Why are there error terms in a model? You must have noticed the presence of an error term (ϵ, greek letter epsilon) in every statistical model. Below are the reasons for it: Usually, it is not possible to consider all the independent … Read more