Show that in the multiple regression of y on a constant, x1 and x2 while imposing the
Question:
Show that in the multiple regression of y on a constant, x1 and x2 while imposing the restriction β1 + β2 = 1 leads to the regression of y − x1 on a constant and x2 − x1.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 85% (7 reviews)
For convenience we put the constant ter...View the full answer
Answered By
Shadrack Mulunga
I am a Biochemistry by profession. However, I have explored different fields of study. My quest to explore new fields has helped me gain new knowledge and skills in Business, clinical psychology, sociology, organizational behavior and general management, and Project Management. I count my expertise in Project management, in particular, creation of Work Break Down Structure (WBS) and use of Microsoft Project software as one of my greatest achievement in Freelancing industry. I have helped thousands of BSC and MSC students to complete their projects on time and cost-effectively using the MS Project tool. Generally, I find happiness in translating my knowledge and expertise to success of my clients. So far, i have helped thousands of students to not only complete their projects in time but also receive high grades in their respective courses. Quality and timely delivery are the two key aspects that define my work. All those who hired my services always come back for my service. If you hire my services today, you will surely return for more. Try me today!
5.00+
154+ Reviews
289+ Question Solved
Related Book For
Question Posted:
Students also viewed these Econometric questions
-
A multiple regression of y on a constant x 1 and x 2 produces the following results: y = 4 + 0.4x 1 + 0.9x 2 , R 2 = 8/60, e'e = 520, n = 29, Test the hypothesis that the two slopes sum to 1. [29 0 0...
-
Show that in the multiple regression of y on a constant, x 1 and x 2 while imposing the restriction 1 + 2 = 1 leads to the regression of y x 1 on a constant and x 2 x 1 .
-
A multiple regression of y on a constant x1 and x2 produces the following results: y = 4 + 0.4x1 + 0.9x2. R2 = 8/60, e' e = 520, n = 29, Test the hypothesis that the two slopes sum to 1. [29 0 X'X...
-
An investment was made for $35,000 and and income of $3,000. The ending value of the investment was $34,000. The percentage return on the investment is closest to: 5.7%, 8.6%, 11.8%
-
Go to either www.theglobeandmail.com/globe-investor or ca.finance.yahoo.com and look up the companies listed in problem 21. Briefly describe the main businesses of each company. Do you think that...
-
Chucks Custom Boats (CCB) builds luxury yachts to customer order. CCB has landed a contract with a mysterious New York lawyer (Mr. T). Relevant data are shown on the next page. The complication is...
-
Gross Profit Percentage Calculate the company's 2019 gross profit percentage and compare the L04 result to the industry average. Use the following financial data for Brenner Instruments Sales...
-
Presented below is selected information related to Matt Perry Inc. as of December 21, 2012. All these items have debit balances. Cable television franchises .........Film contract rights Music...
-
Use the pictures in the comments section to answer the following questions. please put page numbers next to answer. Provide examples of actual international prosecutions 11.4 Enforcing International...
-
Russian is an Indo-European language of the Slavic family, spoken in Russia. Determine from the following Russian data whether the low front [a] and the low back [a] complement each other as...
-
Prove that under the hypothesis that R = q, the estimator where J is the number of restrictions, is unbiased for 2. (y-Xb.)(y-Xb) n-K+J
-
In Solows classic (1957) study of technical change in the U.S. economy, he suggests the following aggregate production function: q(t) = A(t) f [k (t)], where q(t) is aggregate output per work hour,...
-
The following ratios are for Lin Inc. Instructions (a) Is Lins short-term liquidity improving or deteriorating in 2015? Explain. (b) Identify any steps Lin might have taken, or wish to take, to...
-
What are some advanced techniques used in persuasive business writing to influence decision-making? Illustrate with examples how these techniques can be applied in a corporate context .
-
How might someone study law from the standpoint of sociology of law? Compare and contrast between top down and bottom up approaches to the study of law.
-
Suppose that a 1-year zero-coupon bond with the face value of $100 currently sells at $94.34, while a 2-year zero sells at $84.99. You are considering the purchase of a 2-year-maturity bond making...
-
What is Weber's definition of the juristic person? What is the role of such a person in Weber's sociology of law?
-
Andrew Buckner earns $ 1 , 6 8 0 per week. He is married and files jointly. What is Andrew's federal income tax? Use the percentage method.
-
How are Bode plots used?
-
Subprime loans have higher loss rates than many other types of loans. Explain why lenders offer subprime loans. Describe the characteristics of the typical borrower in a subprime consumer loan.
-
Discuss what problems each of the five modifications means to a competitive market outcome.
-
A two-way fixed effects model, suppose that the fixed effects model is modified to include a time-specific dummy variable as well as an individual-specific variable. Then yit = i + t + 'xit + it. At...
-
Two-way random effects model, we modify the random effects model by the addition of a time specific disturbance. Thus, yit = + 'xit + it + ui + vt, where Write out the full covariance matrix for a...
-
The model satisfies the Group Wise heteroscedastic regression model of Section 11.7.2. All variables have zero means. The following sample second-moment matrix is obtained from a sample of 20...
-
A company has en 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 2 3 4 5 6 7 + + + F Project -$300-$387 -$193 -$100 $600...
-
You are considering investing in a scholarship fund for your daughter. The fund operates in the following way: Starting in one month's time you would make regular monthly deposits of $50 for a period...
-
A Firm has a stock price of 6 5 and an annual standard deviation of 2 5 % . The risk - free rate is 1 0 % ( c . c . ) . This firm will pay a dividend of $ 8 in exactly 3 months and no other dividends...
Study smarter with the SolutionInn App