Now we find the value of
b1 by OLS method.
Note:- we can find the value of b1 by using the value of b0.
Hence proved.
Derive the expression for b1 using the OLS method. bi Σκη – x)(y, - y) Σ(x-...
Question 1 Consider the simple regression model (only one covariate): y= BoB1 u Let B1 be the OLS estimator of B1. a) What are the six assumptions needed for B1 to be unbiased, have a simple expression for its variance, and have normal distribution? (3 points) b) Under Assumptions 1-6, derive the distribution of B1 conditional on x\,..., xn. (3 points) In lecture we described how to test the null hypothesis B1 bo against the alternative hypothesis B1 bo, where...
3. Derive the expression for b1 from the normal equations:
Please provide step by step solutions and explanations for below
questions
1. Derive the OLS estimator for B1 2. Prove that it is unbiased 3. Given the data below Obs y 25 X 2 1 5 2 14 1 4 38 -2 4 3 7 4 23 50 0 5 Compute B using algebra. In other words you are god and you observe u. Now use your ols estimator, as a human who does not observe u, to compute B....
Please expain the steps to get to the answer
You have estimated the following equation using OLS: 20.5015.50 - FEMALE (12.3) 1.67) where y is annual income in thousands and FEMALE is an indicator variable such that it is 1 for females and 0 for males. If, instead, you had estimated the following model: bi MALES b2 FEMALE then the estimated coefficients for b1 and b2 would be: (a) bi = 15.50, and b2 = 36.00. (b) bi = 20.50,...
a) Derive the goods market demand curve in terms of the output
(Y) and the exogenousvariables:c0,c1,b0,b1,g0,g1andT.
b)Draw the Goods Market Equilibrium. Be sure to label all curves,
label the equilibrium point, and label the slope of each
curve.
c)Solve for the equilibrium output (Y) in terms of the exogenous
variables:c0,c1,b0,b1,g0,g1andT.
d)Supposeg1increases, but stillc1+b1+g1<1. Using a graph of the
goods market, show how we would represent an increase in the value
ofg1on equilibrium output y. Be sure to label all axes,...
2. Changing Units Suppose we estimate a standard OLS regression equation on data X and Y and have the standard formulas: 3, L2=(X - X)(Y - Ý) 1=1(X; - X)2 Bo =Ỹ – BX Now suppose that Xi = 1+1.6Z; for some Zi. I.e., suppose that X; were generated by trans- forming some Zi. a) Show that: X = do +ajz for some do, ai (that you need to solve for). b) Plug in the expression from (a) into (X;...
please help me to answer this questions, please show the
detailed.
1. Review the OLS model with one variable and an intercept. Estimate a model with unknown slope and intercept of a line, assuming the Gauss Markov Assumptions hold. Suppose the mean of the Xi's is 70. the mean of the li's is 100, the Σ x =-3.550, the Σ x-2.250, Σ κ-4, 872,040, n-12 and Σ e-487, 204, Σ X-61,050, where zi = X,- X and = Y-Y (a)...
c. Derive the following expression Using the expression in part c, derive an expression for terms of only Rand P. d. ASof an ideal gas in How does the molar entropy change with increasing pressure for an ideal gas? Justify you answer using the result in part d e.
I really need the answers to these two small questions. I post
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4. Suppose that (Xi,K), , (XN,Yv) denotes a random sample. Let Si-a+ bXi, T, e+dy, where a, b, c and d are constants. Let X-., Σ Xi, and σ Σ (Xi-X)2, with the analogous expressions for y, ST. Let ởXY-NT Σ(Xi-X)(y-y), and...
Consider the model, Yt = BO+B1 Xt + Ut, and this is estimated using OLS with 65 observations. However, it is suspected autocorrelation is present. You estimate the residuals (Uhatt) on the lag of residuals (Uhatt-1), Xt, and a constant. These estimation results are presented in the table below. Coefficient Std. Error Intercept Uhatt-1 Xt 0.006 0.052 0.004 0.051 0.002 0.001 0.004 R2 Adjusted-R2 0.003 Make your decision on autocorrelation and choose the most appropriate action from the responses. A....