Suppose that the classical regression model applies but that the true value of the constant is zero.
Question:
Suppose that the classical regression model applies but that the true value of the constant is zero. Compare the variance of the least squares slope estimator computed without a constant term with that of the estimator computed with an unnecessary constant term.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (18 reviews)
The OLS estimator fit without a constant term is b xyx...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Econometric questions
-
In the classical regression model with heteroscedasticity, which is more efficient, ordinary least squares or GMM? Obtain the two estimators and their respective asymptotic covariance matrices, then...
-
For random sampling from the classical regression model in (17-3), reparameterize the likelihood function in terms of = 1/ and = (1/). Find the maximum likelihood estimators of and and obtain the...
-
For random sampling from the classical regression model in (14-3), reparameterize the likelihood function in terms of = 1/ and = (1/). Find the maximum likelihood estimators of and and obtain the...
-
A 2-in dia. steel bar is subjected to the loading indicated. Locate and estimate the maximum shear stress in the weld throat. F T____ 2 ...... kips 15 kip ·in 6 in in 2-in dia.
-
E-Books.com currently has a 10-year $1 million bond issue outstanding (5 years remaining to maturity) with an 11% coupon interest rate and a $1,000 par value. The call premium on these bonds is 5%....
-
Stacy Company reported total assets of $1,400,000 and noncurrent assets of $480,000. The company also reported a current ratio of 3.5. What amount of current liabilities did the company report?
-
A managers failure to enforce a late-to-work policy the same way for all employees is a violation of ____________ justice. (a) interactional (b) moral (c) distributive (d) procedural
-
In a recent balance sheet, Microsoft Corporation reported Property, Plant, and Equipment of $15,082 million and Accumulated Depreciation of $7,547 million. a. What was the book value of the fixed...
-
The weights (to the nearest five pounds) of 36 randomly selected male college students are organized in the histogram. Use the graph to find the modal weight. Number of Students (frequency) Weight of...
-
Critically analyse the development from a broadcast culture to today's so-called "participatory culture". Focusing on key media and communications technologies, identify the factors that gave rise to...
-
Consider the simple regression yt = xt + 1 where E p[ | x] = 0 and E [2 | x ] = 2 (a) What is the minimum mean squared error linear estimator of ? Choose e to minimize Var [] + [E( ?? )]2. The answer...
-
Suppose that the regression model is yi = + xi + i, where the disturbances i have f (i) = (1/) exp (i), i 0. This model is rather peculiar in that all the disturbances are assumed to be positive....
-
Eliana, how many times do I have to tell you to stop using your personal phone at work when you are waiting on customers? Identify the communication barrier indicated by each statement. A. Perception...
-
A machine costing $212,800 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce...
-
Where is the intersection between Leadership and ethics? this is a very broad question.Where does the responsibility to behave ethically when working with older people sit? If a nurse in a nursing...
-
The normal boiling point of ethylene glycol is 197C; its enthalpy of vaporization is 801 J mol -1 Estimate the temperature at which ethylene glycol will boil in a vacuum distillation if the system...
-
Abbey Co . sold merchandise to Gomez Co . on account, $ 2 6 , 5 0 0 , terms 2 / 1 5 , n / 4 5 . The cost of the goods sold was $ 1 5 , 4 1 7 . Abbey Co . issued a credit memo for $ 3 , 2 0 0 for...
-
TQ 4.1: Identify the four classes of offenses in the Bribery Act 2010 (U.K.). TQ 4.2: Identify two ways in which the Bribery Act 2010 (U.K.) is broader than the FCPA in the United States. TQ 4.3:...
-
Data on Goodman Company's direct labor costs is given below: Standard hours allowed...... Actual direct labor hours... Labor usage variance, favorable.. Labor rate variance, favorable. Total payrol...
-
The time to assemble the first unit on a production line is 10 hours. The learning rate is 0.94. Approximately how long will it take for the seventh unit to be assembled? The number of hours needed...
-
What are some examples of positive protections for women workers in this period? Some not so positive protections?
-
A common strategy for handling a case in which an observation is missing data for one or more variables is to fill those missing variables with 0s and add a variable to the model that takes the value...
-
Let Y denote total expenditure on consumer durables, nondurables, and services and E d , E n , and E s are the expenditures on the three categories. As defined, Y = E d + E n + E s . Now, consider...
-
Prove that the adjusted R 2 in (3-30) rises (falls) when variable x k is deleted from the regression if the square of the t ratio on x k in the multiple regression is less (greater) than 1.
-
Question 4 of 6 < > -/15 Current Attempt in Progress Sheridan Company has accounts receivable of $202,000 at September 30, 2024. An analysis of the accounts shows the following: Month of Sale Balance...
-
The charge on your rent-to-own washer is $40 per month. After 32 months, you get to keep the washer. How much does the washing machine end up costing you? Cost of washing machine
-
Prepare horizontal analysis on income statement below: Bristol Myers Squibb Co. (NYS: BMY) Report Date 2020 2019 2018 Net product sales 41,321 25,174 21,581 Alliance & other revenues 1,197 971 980...
Study smarter with the SolutionInn App