Interpreting Model Parameters in Context

Free SOA Exam SRM (Statistics for Risk Modeling) lesson in Linear Models. 21 min read, ~3,094 words.

Each slope is the expected change in Y per one-unit increase in, holding all other predictors fixed. Units matter; always state them. The intercept is the expected Y when every predictor equals zero, meaningful only if X = 0 is inside the data range and business-plausible. Rescaling by a factor...