7. Consider the following model: y = B, + B,x +° . In this model, the following is true: a) there is a deterministic component and a random component in the model equation b) the error term in the model represents cumulative mistakes made by the researcher in computing his/her statistics on the sample c) the intercept value is necessarily equal to 0 for any sample on which this equation is applied (as evidenced by the fact that it is indicated by the subscript 0)

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 1EQ: 1. Suppose that, in Example 2.27, 400 units of food A, 600 units of B, and 600 units of C are placed...
icon
Related questions
Question
7. Consider the following model: y= Po + B,x +€ . In this model, the
following is true:
a) there is a deterministic component and a random component
in the model equation
b) the error term in the model represents cumulative mistakes
made by the researcher in computing his/her statistics on the
sample
c) the intercept value is necessarily equal to 0 for any sample on
which this equation is applied (as evidenced by the fact that it is
indicated by the subscript 0)
d) when computed on a sample, the slope must always be
positive for this equation to work
e) if we were to use this equation for prediction, we'd place
“hats" above certain values in the equation
f) a and e
g) a, b and e
Transcribed Image Text:7. Consider the following model: y= Po + B,x +€ . In this model, the following is true: a) there is a deterministic component and a random component in the model equation b) the error term in the model represents cumulative mistakes made by the researcher in computing his/her statistics on the sample c) the intercept value is necessarily equal to 0 for any sample on which this equation is applied (as evidenced by the fact that it is indicated by the subscript 0) d) when computed on a sample, the slope must always be positive for this equation to work e) if we were to use this equation for prediction, we'd place “hats" above certain values in the equation f) a and e g) a, b and e
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Systems of Linear Equations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning