3. A sample of 4 students was taken, and information about daily pocket money, in TL, [y] and spending, in TL, [x] was collected. y 200 300 200 250 400 500 400 350 a) By using OLS, calculate the slope coefficient in the regression of y on x, i.e. y= a + B x+u [Denote it as Byx]. b) By using OLS, calculate the slope coefficient in the regression of x on y, i.e. x = a + ß y + u [Denote it as Byy].

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter7: Analytic Trigonometry
Section7.6: The Inverse Trigonometric Functions
Problem 94E
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a sample of 4 students was taken and information about daily pocket money in tl (Y) and spending in tl (x) was collected

3. A sample of 4 students was taken, and information about daily pocket money, in TL, [y] and spending, in TL, [x] was collected.
y
200
200
300
250
500
400
400
350
a) By using OLS, calculate the slope coefficient in the regression of y on x, i.e. y= a+ Bx+u [Denote it as Byx]-
b) By using OLS, calculate the slope coefficient in the regression of x on y, i.e. x= a + By +u [Denote it as Bxy].
c) Calculate the sample correlation coefficient (r) and confirm that r = BxY . ÞYx
Transcribed Image Text:3. A sample of 4 students was taken, and information about daily pocket money, in TL, [y] and spending, in TL, [x] was collected. y 200 200 300 250 500 400 400 350 a) By using OLS, calculate the slope coefficient in the regression of y on x, i.e. y= a+ Bx+u [Denote it as Byx]- b) By using OLS, calculate the slope coefficient in the regression of x on y, i.e. x= a + By +u [Denote it as Bxy]. c) Calculate the sample correlation coefficient (r) and confirm that r = BxY . ÞYx
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