StatLab Articles

I. What is Cronbach's alpha?

Cronbach's alpha is a measure used to assess the reliability, or internal consistency, of a set of scale or test items. In other words, the reliability of any given measurement refers to the extent to which it is a consistent measure of a concept, and Cronbach’s alpha is one way of measuring the strength of that consistency.

On Thursday, October 15, 2015, a disbelieving student posted on Reddit: My stats professor just went on a rant about how R-squared values are essentially useless, is there any truth to this? It attracted a fair amount of attention, at least compared to other posts about statistics on Reddit.

Take a look at the following table. It is a cross tabulation of data taken from the 1991 General Social Survey that relates political party affiliation to political ideology (Agresti, An Introduction to Categorical Data Analysis, 1996).

You ran a linear regression analysis and the stats software spit out a bunch of numbers. The results were significant (or not). You might think that you’re done with analysis. No, not yet. After running a regression analysis, you should check if the model works well for the data.

When we think of regression, we usually think of linear regression, the tried and true method for estimating a mean of some variable conditional on the levels or values of independent variables. In other words, we're pretty sure the mean of our variable of interest differs depending on other variables. For example, the mean weight of 1st-year UVA males is some unknown value. But we could in theory take a random sample and discover there is a relationship between weight and height.

When I first learned data analysis, I always checked normality for each variable and made sure they were normally distributed before running any analyses, such as t-test, ANOVA, or linear regression. I thought normal distribution of variables was the important assumption to proceed to analyses. That’s why stats textbooks show you how to draw histograms and QQ-plots in the beginning of data analysis in the early chapters and see if variables are normally distributed, isn’t it?

First off, what is endogeneity, and why would we want to simulate it?

Endogeneity occurs when a statistical model has an independent variable that is correlated with the error term. The reason we would want to simulate it is to understand what exactly that definition means!

Let’s first simulate ideal data for simple linear regression using R.

The QQ plot, or quantile-quantile plot, is a graphical tool to help us assess if a set of data plausibly came from some theoretical distribution such as a normal or exponential. For example, if we run a statistical analysis that assumes our residuals are normally distributed, we can use a normal QQ plot to check that assumption. It's just a visual check, not an air-tight proof, so it is somewhat subjective.

An important component of data analysis is graphing. Stata provides excellent graphics facility for quickly exploring and visualizing your data. For example, let's load the auto data set that comes with Stata (1978 Automobile Data) and make two scatterplots and then two boxplots:

One of the assumptions of the Analysis of Variance (ANOVA) is constant variance. That is, the spread of residuals is roughly equal per treatment level. A common way to assess this assumption is plotting residuals versus fitted values. Recall that residuals are the observed values of your response of interest minus the predicted values of your response. In a one-way ANOVA, this is simply the observed values minus the treatment group mean. For example, below we have a plot of residuals versus fitted values for a one-way ANOVA.