In regression model: Yi = B1+ B2Xi+ Ei, where Ei is a random variable independent of Xi, with mean and variance constant and different from zero. Ei ~(media, varianza) Obtain the OLS estimator of ẞ2. Show that the properties of finite samples hold.
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In regression model: Yi = B1+ B2Xi+ Ei, where Ei is a random variable independent of Xi, with mean and variance constant and different from zero. Ei ~(media, varianza) Obtain the OLS estimator of ẞ2. Show that the properties of finite samples hold.
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- In regression analysis, the existence of a significant pattern in successive values of the error term constitutes:The owner of a movie theater company used multiple regression analysis to predict gross revenue (y) as a function of television advertising (x1) and newspaper advertising (x2). The estimated regression equation was ŷ = 83.7 + 2.23x1 + 1.60x2. The computer solution, based on a sample of eight weeks, provided SST = 25.4 and SSR = 23.445. (a)Compute and interpret R2 and Ra2.(Round your answers to three decimal places.) The proportion of the variability in the dependent variable that can be explained by the estimated multiple regression equation is (??) . Adjusting for the number of independent variables in the model, the proportion of the variability in the dependent variable that can be explained by the estimated multiple regression equation is (??).Suppose we estimate the following econometric model with OLS: What does OLS do? OLS chooses and to minimize the sum of residuals. OLS chooses and to minimize the sum of squared residuals. OLS chooses and to minimize the error term OLS chooses and to minimize the error term
- The error term in a regression equation is said to exhibit homoskedasticty if ____________. a) it has the same variance for all values of the explanatory variable(s). b) None of the other possible answers correctly finish the sentence. c) it takes the value of one given any values of the explanatory variable(s). d) it has the same value for all values of the explanatory variable(s). e) it has a zero conditional mean.The following data gives the experience of the machine operators and their performance ratings as given by the number of good parts turned out per 100 pieces.Experience(X) 16 12 18 4 3 10 5 12Performance Ratings (Y) 88 87 89 68 78 80 75 83Obtain the regression line of performance ratings on experience and estimate the probable performance if the operator has 7 years of experience.No written by hand solution Consider the following data: x⎯⎯x¯ = 20, sx = 2, y⎯⎯y¯ = −5, sy = 4, and b1 = 0.40. Which of the following is the sample regression equation? Multiple Choice yˆ = −13 − 0.40x yˆ= −13 + 0.40x yˆ = 3 − 0.40x yˆ = 3 + 0.40x
- In terms of econometric perspective, what are the assumptions or elements that you need to consider in developing the model for estimation.When the R2 of a regression equation is very high, it indicates that all the coefficients are statistically significant. the intercept term has no economic meaning. a high proportion of the variation in the dependent variable can be accounted for by the variation in the independent variables. there is a good chance of serial correlation and so the equation must be discarded.Using the regression results in column (1):a. Is the college–high school earnings difference estimated from thisregression statistically significant at the 5% level? Construct a 95%confidence interval of the difference.b. Is the male–female earnings difference estimated from this regressionstatistically significant at the 5% level? Construct a 95% confidenceinterval for the difference.
- Suppose you run a regression y=alpha + beta*x + u. You know that the estimated coefficient is 2.94 and the standard error is 1.09. What is the value of t-statistic for your estimated coefficient beta?The standard deviation of the error terms in an estimated regression equation is known as:Using the regression results in column (1):a. Is the college–high school earnings difference estimated from thisregression statistically significant at the 5% level? Construct a 95%confidence interval of the difference.b. Is the male–female earnings difference estimated from this regressionstatistically significant at the 5% level? Construct a 95% confidenceinterval for the differenc(answer for me part please)