Page 14 - Regression Guideline for AMC
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Understanding regression mechanics
• In the es6mated regression model, all of these characteris6cs were significantly associated with the sales prices of the proper6es in the database.
• In sta6s6cs, a significant effect is not necessarily a large effect, although the term suggests that. It simply means that the effect is not due to random factors that on the surface seem to be related to the outcome but in reality occur just by chance (as when a person blowing on a set of dice and having a succession of winning rolls at craps comes to believe that the act of blowing on the dice is responsible for the favorable rolls). Thus, the effects that are sta6s6cally significant are ones that are reliably and not randomly associated with varia6on in sales price.
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