Suppose that we use the model Y = Xi + i, where E[i] = 0 and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Suppose that we use the model Y = Xi + i, where E[i] = 0 and Var(e;) = . In other words, there is no intercept in this model. This is called regression through the origin. (a) Find the least squares estimator for this model. (b) Show that is unbiased; that is, E[1] = 1. Note: To simplify the notation, we have written E[1] instead of E[ 1 | X,... Xn]. Because we've conditioned on Xi, you can treat X; as fixed (not random) in your calculations. (c) Suppose you use your estimator from (a), but the true model is actually Yi = Bo + BiXi ti, where o 0. Show that the estimator you derived in (a) is biased, and calculate the bias. (That is, calculate E[1] - B. Again, treat X; as fixed.) Suppose that we use the model Y = Xi + i, where E[i] = 0 and Var(e;) = . In other words, there is no intercept in this model. This is called regression through the origin. (a) Find the least squares estimator for this model. (b) Show that is unbiased; that is, E[1] = 1. Note: To simplify the notation, we have written E[1] instead of E[ 1 | X,... Xn]. Because we've conditioned on Xi, you can treat X; as fixed (not random) in your calculations. (c) Suppose you use your estimator from (a), but the true model is actually Yi = Bo + BiXi ti, where o 0. Show that the estimator you derived in (a) is biased, and calculate the bias. (That is, calculate E[1] - B. Again, treat X; as fixed.)
Expert Answer:
Related Book For
Business Statistics In Practice
ISBN: 9780073401836
6th Edition
Authors: Bruce Bowerman, Richard O'Connell
Posted Date:
Students also viewed these mathematics questions
-
Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2024. Power Drive has the...
-
Q1. You have identified a market opportunity for home media players that would cater for older members of the population. Many older people have difficulty in understanding the operating principles...
-
Let A, B be sets. Define: (a) the Cartesian product (A B) (b) the set of relations R between A and B (c) the identity relation A on the set A [3 marks] Suppose S, T are relations between A and B, and...
-
Perhaps more surprising to Mr. Pitkin was a proposal by the VP of Marketing to make a major investment in market share by increasing promotional expenditures by $2.5 million during 1998-2000. Sales...
-
X and Y have joint PDF Find the PDF fy(y), the conditional PDF fX|Y(x|y), and the conditional expected value E[X|Y = y]. 0 otherwise.
-
Economists have criticized the tax treatment of health insurance. Why have unions resisted changing this tax treatment ? What are the equity and efficiency consequences of capping the tax...
-
The records of Anderson Inc. provide the following information for the tax year 2020. - There was no beginning balance in deferred tax account(s). - Taxable income for 2020 was \(\$ 60,000\). - Tax...
-
Wenner Furnace Corp. purchased machinery for $279,000 on May 1, 2012. It is estimated that it will have a useful life of 10 years, salvage value of $15,000, production of 240,000 units, and working...
-
I need help with this practice worksheet. (The information is placed in the white boxes, use the existing information the gray boxes do not have any information) I have already completed this but...
-
Use the Financial Statements for Moon Walk Inc. to complete the following questions. Moon Walk Inc. Comparative Statement of Income for the 12 months ending December 31, 2024 Account 2024 2023 2022...
-
You have decided to open a new nightclub in a university town and have decided to hire part-time employees as security staff for the dance hours of 7 p.m. 1 a.m. Write a set of notes regarding the...
-
You and your brother have recently completed your degree programmes and have luckily found jobs in the same company in Barcelona. You now need to research, generate and submit your finale capstone...
-
One dealer is selling the Nissan Leaf Hatchback for $25,500.00$25,500.00. Their finance company is offering a 7272-month amortized loan at a rate of 1.751.75%%. Assume a down payment of 1515%%. What...
-
1. Suppose you have a $10,000 loan. The compound interest on the loan is 8%. You have a single payment due in 10 years. What is the total interest payment on this loan? 2. Suppose you are considering...
-
Discount rate is 14%. test cost $20,000,000, invest $100,000,000, Cash flow after tax $66,000, Npv $-20,000,000. What is time 1 NPV
-
Content marketing is an integral component of social media marketing. For example, we see websites with blogs and branded profiles on major social media networks. Blog posts get shared on many social...
-
Produce general personal mission statement. Once you composed this mission statement, what about this statement supports your values and how?
-
A. Select a recent issue (paper or online) of Report on Business Magazine, Canadian Business Magazine (online only), Bloomberg Businessweek, Fast Company, The Economist, or another business magazine....
-
The lifetimes of a particular brand of DVD player are normally distributed with a mean of eight years and a standard deviation of six months. Find each of the following probabilities where x denotes...
-
Explain how a stratified random sample is selected. Discuss how you might define the strata to survey student opinion on a proposal to charge all students a $100 fee for a new university-run bus...
-
What lour assumptions do we make about the simple linear regression model?
-
5. Question: Alan Dershowitz, a law professor famous for his wealthy clients (O. J. Simpson, Claus von Bulow, Leona Helmsley), joined with other lawyers to open a kosher delicatessen, Maven's Court....
-
8. YOU BE THE JUDGE WRITING PROBLEM Cellwave was a limited partnership that applied to the Federal Communications Commission (FCC) for a license to operate cellular telephone systems. After the FCC...
-
7. Question: Mrs. Meadows opened a biscuit shop called The Biscuit Bakery. The business was not incorporated. Whenever she ordered supplies, she was careful to sign the contract in the name of the...
Study smarter with the SolutionInn App