[Verse 1] Scatter plots reveal their secrets when we draw the perfect line Ordinary Least Squares minimizes distance every time Sum of squared residuals shrinking to the smallest space Where predicted meets reality in regression's embrace [Chorus] R-squared tells us variation, but causation's not the same Correlation fools the careless, leaves assumptions up in flames Hold those variables constant when interpreting the slope VIF detects multicollinearity's deceptive rope [Verse 2] Normal curves and central limits guide our confidence today P-values dance with alpha while Type One errors lead astray Null hypothesis standing trial, alternative takes the stand Binary outcomes need logistic regression's guiding hand [Chorus] R-squared tells us variation, but causation's not the same Correlation fools the careless, leaves assumptions up in flames Hold those variables constant when interpreting the slope VIF detects multicollinearity's deceptive rope [Bridge] Heteroskedasticity disrupts our standard errors' truth White's test exposes variance that changes smooth to rough Autocorrelation haunts time series with dependent ghosts While omitted variables bias the coefficients we trust most [Verse 3] Dummy variables capture categories in numeric form Interaction terms reveal when variables perform Log transformations unlock elasticity's hidden power Panel data methods track changes hour by hour [Chorus] R-squared tells us variation, but causation's not the same Correlation fools the careless, leaves assumptions up in flames Hold those variables constant when interpreting the slope VIF detects multicollinearity's deceptive rope [Outro] Endogeneity corrupts estimates with bias undefined Robust standard errors rescue models from design Specification matters more than statistical might When regression diagnostics keep your analysis tight
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