Error Essay Example | Topics and Well Written Essays - 1000 words

Error - Essay ExampleFor our companies brand we have a good RMSEMean absolue error is the average of the difference between predicted and actual jimmy in whole test cases it is the average prediction error. It is similar to RMSE. Again The biggest MAE=0.080486 is for Technitrol, but even this broken mean confirms the accuracy of our prediction.The t-statistic, which is computed as the ratio of an estimated coefficient to its standard error, is used to test the hypothesis that a coefficient is satis itemory to zero. To interpret the t-statistic, you should examine the probability of observing the t-statistic given that the coefficient is equal to zero.Model parameters conditional relation testing (Student statistics or t-statistics - variate with t-distribution), which is used for coefficient significance estimation in statistical sense, calculates with formula , where model coefficient estimation postal code hypothesis (intial hypothesis) relatively to this estimation Standard ErrorIn our case, we take null hypothesis that our of import coefficient is insignificant (). It allows simplifying the calculations, in spite of this hypothesis is opposite to desired (that Beta coefficient is significant) one.To define whether coefficient estimation is significant, we atomic number 18 to know the sample power (number of observations) (360 in our case), degrees of freedom, where number of model coefficients (n=2 in our case), and of course significance level - lets take as the most popular. In fact, significance level means the error of prime(prenominal) kind probability during hypothesis checking.Lets find the table means for this case.So, =0.05 and In Students distribution table the requisite mean is equal to 1.64 (more than 60 row).Lets analyze this result for our companies. The least is 5,01341 for Parkway Properties. Others are more.It means, that for all companies Beta-coefficient is significant (t-statistics is more than captious - from the table).On th e other hand, we can provide t-test also for C-coefficient as vituperative value of t-statistics is the same 1,64.According to our results, the next companies have C-coefficients, which are non significant (can be not considered in our model).macdermid Raytheon gannettNavistarEcolabHarscoHalliburton Thats because the t-statistics for their C - coefficients are less than 1,64. For other companies these coefficient cant be considered as insignificant as their t-statistics exceeds critical value. They areparkway propertiesJacobs engineeringjp morganTarget Exxon MobiltechnitrolAmerican ExpressNational fuel gasThis fact can be explained with some market