Regression: Identify Assumptions & Apply Models
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Regression: Identify Assumptions & Apply Models
This course is part of Quantitative Finance & Risk Modeling Specialization
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February 2026
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There is 1 module in this course
Learn how to make your regression models trustworthy, not just accurate. In this short, hands-on course, you'll explore the key assumptions behind classical linear regression and practice verifying them in RStudio. You'll fit an Ordinary Least Squares (OLS) model, visualize residuals, and detect patterns like heteroscedasticity that can distort financial forecasts. With guided discussions, a coding lab, and diagnostic interpretation, you'll build the confidence to present reliable, evidence-based results. By the end, you'll know how to test assumptions, interpret residuals, and communicate findings clearly to both analysts and decision-makers.
Learn how to make your regression models trustworthy, not just accurate. In this short, hands-on course, you'll explore the key assumptions behind classical linear regression and practice verifying them in RStudio. You'll fit an Ordinary Least Squares (OLS) model, visualize residuals, and detect patterns like heteroscedasticity that can distort financial forecasts. With guided discussions, a coding lab, and diagnostic interpretation, you'll build the confidence to present reliable, evidence-based results. By the end, you'll know how to test assumptions, interpret residuals, and communicate findings clearly to both analysts and decision-makers.
What's included
7 videos2 readings3 assignments
7 videosβ’Total 32 minutes
- Welcome: Why Regression Assumptions Matterβ’3 minutes
- The Four Regression Assumptions Explainedβ’4 minutes
- When Assumptions Fail: Real Financial Examplesβ’7 minutes
- Welcome: From Assumptions to Actionβ’4 minutes
- Fitting an OLS Model in RStudioβ’6 minutes
- Reading Residual Plots: Spotting Funnel Patternsβ’7 minutes
- Congratulations and Continuous Learning Journeyβ’1 minute
2 readingsβ’Total 20 minutes
- Diagnosing Before Modeling: Understanding Classical Regression Assumptionsβ’10 minutes
- Residuals Tell the Real Storyβ’10 minutes
3 assignmentsβ’Total 70 minutes
- Graded Quiz: Regression Reliability Checkβ’20 minutes
- Hands-on Activity: Spot the Violation in Simulated Data (RStudio)β’25 minutes
- Hands-on Activity: Verify Model Reliability with Residual Diagnosticsβ’25 minutes
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