Homework Answers
So we can describe the Regression model with and without
intercept as follows 
Add Answer to:
PART 2: Additional Problem 5. Derive the OLS slope estimate for the case when a regression...
Problem 2. (Regression without intercept, 50 pts) Suppose you are given the model: Y; = BX;...
Problem 2. (Regression without intercept, 50 pts) Suppose you are given the model: Y; = BX; + Ui, E[u;|Xį] = 0. A) Derive the OLS estimator ß. B) After you estimate B, you can obtain the residual û; = Y; – ĢXį. Does 21-1 Ûi = 0? Explain why and show your derivation.
2. Suppose we have the simple regression model Y =a+8X:+E, and their OLS coefficient estimators a...
2. Suppose we have the simple regression model Y =a+8X:+E, and their OLS coefficient estimators a and b. Answer the following questions. (a) Suppose we multiply X, by 1/2 for all i and do the OLS estimation again using X as the regressor (the independent variable). What will be your new estimators, denoted by ă (intercept) and b (slope)? Compare them with the original OLS estimators a and b, respectively (b) Compare Var[b] and Var[b]. Are they the same or...
How does fertility affect labor supply? That is, how much does a woman's labor supply fall when she has an additional child? We would like to estimate this effect using data for married women fro...
How does fertility affect labor supply? That is, how much does a woman's labor supply fall when she has an additional child? We would like to estimate this effect using data for married women from the 1980 U.S. Census. The data set contains information on n = 254654 married women aged 21-35 with two or more children. In particular, the variable weeksworked is equal to the number of weeks a mother has worked in 1979; morekids is a dummy variable...
5.Correlation and Simple Regression by Hand Hourly Earnings in Dollars) $35 $15 $40 $30 $55 (Years...
5.Correlation and Simple Regression by Hand Hourly Earnings in Dollars) $35 $15 $40 $30 $55 (Years of Education) 16 14 18 12 20 Be sure to show all of your calculations and to interpret your findings. That is, while you can use R to check your work, you must show all of the calculations below "by hand." Assume that the populations are normal. Compute the sample correlation coefficient (r) between hourly earnings and vears of education for this random sample...
Simple Linear Regression Problem QUESTION 7 A US consumer lobby wishes to develop a model to...
Simple Linear Regression Problem
QUESTION 7 A US consumer lobby wishes to develop a model to predict gasoline usage, as measured by miles per gallon, based on the weight of the car in pounds. The Excel data file AUTO.xls (contained in a folder under the CML Quizzes tab) contains data on this for fifty recent models. Use Excel Data Analysis to estimate a linear model for the relationship, a 95% confidence interval for as opecoefice and ha residua po State...
3) Consider the following linear regression: y =a + Bx + Show that minimizing the sum...
3) Consider the following linear regression: y =a + Bx + Show that minimizing the sum of squared residuals ( - ) to obtain OLS estimators of the slope and the intercept results in the following algebraic properties a) b) Ex = 0 = 0 4) You run the following regression: TestScore = a + (Female) + where TestScore is measured on a scale from 400 to 1000, and female is an indicator for the gender of the student. You...
(d) Construct the t-statistic for the slope coefficient. Is this t-statistic significant at the 10% level?...
(d) Construct the t-statistic
for the slope coefficient. Is this t-statistic significant at the
10% level? Clearly show your work including the critical value
which you are using.
(e) Construct the t-statistic for the intercept coefficient. Is
this t-statistic significant at the 1% level? Clearly show your
work including the critical value which you are using.
(f) Does least squares assumption 1 plausibly hold for this
regression? Explain in detail why or why not.
(g) Are the errors in this...
A) In lecture we derived the estimate of B in WLS as Derive A.wls when p-1. (It should have a for...
a) In lecture we derived the estimate of B in WLS as Derive A.wls when p-1. (It should have a form similar to simple linear regression.) (Hints: Notice that we can write a weighted average as analogues of the sums of squares identities we've used; you should derive these if you need to use them.) . You may need to use weighted b) Assume we have the following data: T1 T2 y2 That is, we have a total of n...
(Solve this problem manually.) Jensen Tire & Auto is in the process of deciding whether to pu...
(Solve this problem manually.) Jensen Tire & Auto is in the process of deciding whether to purchase a maintenance contract for its new computer wheel alignment and balancing machine. Managers feel that maintenance expense should be related to usage, and they collected the following information on weekly usage (hours) and annual maintenance expense (in hundreds of dollars): Weekly Usage (hours) Annual Maintenance Expense ($100) 17 17 20 30 28 40 32 38 18 31 24 32.5 42 41 35 45...
Excel Problem 2 - Chapter 12: PART B: The following data give the selling price, square...
Excel Problem 2 - Chapter 12: PART B: The following data give the selling price, square footage, and age of houses that have sold in a Bend, OR in the past 6 months (note that this is the same base data as Part A, above, with new variables added). Selling Price ($) Square Footage Age (Years) 84,000 1,670 30 79,000 1,339 25 91,500 1,712 30 120,000 1,840 40 127,500 2,300 18 132,500 2,234 30 145,000 2,311 19 164,000 2,377 7...
Problem 2. (Regression without intercept, 50 pts) Suppose you are given the model: Y; = BX; + Ui, E[u;|Xį] = 0. A) Derive the OLS estimator ß. B) After you estimate B, you can obtain the residual û; = Y; – ĢXį. Does 21-1 Ûi = 0? Explain why and show your derivation.
2. Suppose we have the simple regression model Y =a+8X:+E, and their OLS coefficient estimators a and b. Answer the following questions. (a) Suppose we multiply X, by 1/2 for all i and do the OLS estimation again using X as the regressor (the independent variable). What will be your new estimators, denoted by ă (intercept) and b (slope)? Compare them with the original OLS estimators a and b, respectively (b) Compare Var[b] and Var[b]. Are they the same or...
How does fertility affect labor supply? That is, how much does a woman's labor supply fall when she has an additional child? We would like to estimate this effect using data for married women from the 1980 U.S. Census. The data set contains information on n = 254654 married women aged 21-35 with two or more children. In particular, the variable weeksworked is equal to the number of weeks a mother has worked in 1979; morekids is a dummy variable...
5.Correlation and Simple Regression by Hand Hourly Earnings in Dollars) $35 $15 $40 $30 $55 (Years of Education) 16 14 18 12 20 Be sure to show all of your calculations and to interpret your findings. That is, while you can use R to check your work, you must show all of the calculations below "by hand." Assume that the populations are normal. Compute the sample correlation coefficient (r) between hourly earnings and vears of education for this random sample...
Simple Linear Regression Problem
QUESTION 7 A US consumer lobby wishes to develop a model to predict gasoline usage, as measured by miles per gallon, based on the weight of the car in pounds. The Excel data file AUTO.xls (contained in a folder under the CML Quizzes tab) contains data on this for fifty recent models. Use Excel Data Analysis to estimate a linear model for the relationship, a 95% confidence interval for as opecoefice and ha residua po State...
3) Consider the following linear regression: y =a + Bx + Show that minimizing the sum of squared residuals ( - ) to obtain OLS estimators of the slope and the intercept results in the following algebraic properties a) b) Ex = 0 = 0 4) You run the following regression: TestScore = a + (Female) + where TestScore is measured on a scale from 400 to 1000, and female is an indicator for the gender of the student. You...
(d) Construct the t-statistic
for the slope coefficient. Is this t-statistic significant at the
10% level? Clearly show your work including the critical value
which you are using.
(e) Construct the t-statistic for the intercept coefficient. Is
this t-statistic significant at the 1% level? Clearly show your
work including the critical value which you are using.
(f) Does least squares assumption 1 plausibly hold for this
regression? Explain in detail why or why not.
(g) Are the errors in this...
a) In lecture we derived the estimate of B in WLS as Derive A.wls when p-1. (It should have a form similar to simple linear regression.) (Hints: Notice that we can write a weighted average as analogues of the sums of squares identities we've used; you should derive these if you need to use them.) . You may need to use weighted b) Assume we have the following data: T1 T2 y2 That is, we have a total of n...
Most questions answered within 3 hours.
-
The current risk-free rate is 4.0% and the market risk premium
is 5.0%. If Ford Motor...
asked 1 minute from now -
Advances in technology have increased our opportunities to
connect with others. Along with the benefits of...
asked 6 minutes ago -
Compute the interest rate at which $500 per month payments
should grow to accumulate savings of...
asked 7 minutes ago -
The following information pertains to a weekly payroll of Texera
Tile Company:
a. The total wages...
asked 9 minutes ago -
Alice has the RSA public key (n, e) = (11413, 251) and private
key d =...
asked 22 minutes ago -
QUESTION 5
A drug or medicine can reach the brain more effectively by
placing the drug...
asked 26 minutes ago -
Developmental biology
A mouse contains a mutation that results in a failure of their
long
bones...
asked 22 minutes ago -
Rammazzotti, Inc., is looking for feedback on company
performance. The company compares the budget for the...
asked 27 minutes ago -
A manufacturer of chocolate chips would like to know whether its
bag filling machine works correctly...
asked 36 minutes ago -
Consider the student registration business process at
your college:
1.)Describe the steps necessary for you to...
asked 43 minutes ago -
when released from rest at point A, an unknown ion moves to
point B. At point...
asked 35 minutes ago -
A stock is expected to pay the following dividends: $1.1
four years from now, $1.4 five...
asked 40 minutes ago