Prove that E[b' b] = ' + 2Kk=1(1/k) where b is the ordinary least squares estimator
Question:
Prove that E[b' b] = β' β + σ2ΣKk=1(1/λk) where b is the ordinary least squares estimator and λk is a characteristic root of X' X.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (13 reviews)
We write b 3 XX X so bb XXXXXX 23XX X The expected value of the last term is zero and the first is ...View the full answer
Answered By
Sandip Nandnawar
I am a B.E (Information technology) from GECA and also have an M.C.M from The University of RTMNU, MH.
I worked as a software developer (Programmer and TL). Also working as an expert for the last 6 years and deal with complex assessment and projects. I have a team and lead a team of experts and conducted primary and secondary research. I am a senior software engg and senior expert and deal with all types of CSE and IT and other IT-related assessments and projects and homework.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Econometric questions
-
The ordinary least squares (OLS) procedure commonly used in regression produces a line of best fit for the data to which it is applied. How would you define best fit in regression analysis? What is...
-
Let ei be the ith residual in the ordinary least squares regression of y on X in the classical regression model, and let i be the corresponding true disturbance. Prove that plim (ei i) = 0.
-
1. Consider the following simple regression model without intercept: y = B1x + u. Assume that the standard assumptions about this model apply. a) Derive the ordinary least squares (OLS) estimator of...
-
A contract is started on 1 January 2015, with an estimated completion date of 31 December 2016. The final contract price is $1,500,000. In the first year, to 31 December 2015: Costs incurred...
-
In Table 14.1, we showed examples of securities issued by George Weston Ltd. Try to construct a similar table for another company, say Enbridge Inc., by looking up its annual report on the Web. An...
-
Given the complexities and risks involved with supply chains, might it make sense for a business organization to vertically integrate and be its own supply chain?
-
The following statement occurs after Eq. (16-50): "The variation in \(\mathrm{H}_{\mathrm{G}}\) over the column section is usually less than \(10 \%\). ." Explain why this statement is true. h=-...
-
Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6789 and 111-11-1112, respectively. Alice's birthday is September 21, 1968, and...
-
foreign resident tests in order to qualify for certain exclusions a US citizen must meet either bona fide resident or physical present test a. define both of these tests b. may a US citizen qualify...
-
Which life cycle model would you follow for developing software for each of the following applications? Mention the reasons behind your choice of a particular life cycle model. Clearly Justify your...
-
For the classical normal regression model y = X + with no constant term and K regressors, assuming that the true value of is zero, what is the exact expected value of F[K, n K] = (R2/K)/[(1 ...
-
Data on U.S. gasoline consumption for the years 1960 to 1995 are given in Table F2.2. a. Compute the multiple regression of per capita consumption of gasoline, G/pop, on all the other explanatory...
-
1. If you were the management consultant, how would you demonstrate the benefit of a new stock control system to Mr Templar? 2. What information would you need for your demonstration? James Templar...
-
Sub - Saharan Africa is a region on the move. Population is increasing, cities are growing, infrastructure is developing, trade is expanding, and democratic governments are starting to emerge....
-
Astro Company sold 20,000 units of its only product and reported income of $25,000 for the current year. During & planning session for next year's activities, the production manager notes that...
-
Suppose that Crystal receives higher pay from her company than her colleagues, despite the fact that they perform basically the same type of role. If Crystal\'s productivity is about 3 7 percent...
-
Suppose that a professor of labor economics performs a statistical analysis on economywide worker wages using standard, measurable explanatory factors, such as job characteristics, years of...
-
Megalopolis Bank has the following balance sheet and income statement. calculate: the marginal profit margin Net interest margin The Spread Overhead efficiency Need to show work and what numbers to...
-
True or False. A limit cycle denotes a steady-state periodic oscillation.
-
Chao, Louis, and Mari, unrelated individuals, own all of the shares of Cerise Corporation. All three shareholders have been active in the management of Cerise since its inception. In the current...
-
What were some problems in the 1920s that were to later be recognized as warnings of the Great Depression?
-
Compare the mean squared errors of b1 and b1.2 in Section 8.2.2.
-
The J test in Example 8.2 is carried out using over 50 years of data. It is optimistic to hope that the underlying structure of the economy did not change in 50 years. Does the result of the test...
-
The Cox test in Example 8.3 has the same difficulty as the J test in Example 8.2. The sample period might be too long for the test not to have been affected by underlying structural change. Repeat...
-
D Question 34 The following are the assets and liabilities of a government security dealer - Assets: $ 150 million 30 day Treasury bills S 275 million 91 day Treasury bills S 90 million 180 day...
-
A project manager at COMSOFT corporation has collected statistics on the organization's software development process. She has the size of each project in number of lines of code for the past 20...
-
Calculate the purchase price of the $1,000 face value bond using the information given below. (Do not round the intermediate calculations. Round your final answer to 2 decimal places.) Issue date Dec...
Study smarter with the SolutionInn App