27. Suppose an investigator has data on the amount of shelf space x devoted to display of...
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27. Suppose an investigator has data on the amount of shelf space x devoted to display of a particular product and sales revenue y for that product. The investigator may wish to fit a model for which the true regression line passes through (0, 0). The appropriate model is Y 1x . Assume that (x1, y1), . . . ,
(xn, yn) are observed pairs generated from this model, and derive the least squares estimator of 1. [Hint: Write the sum of squared deviations as a function of b1, a trial value, and use calculus to find the minimizing value of b1.]
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Probability And Statistics For Engineering And The Sciences
ISBN: 9781111802325
7th Edition
Authors: Dave Ellis, Jay L Devore
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