Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider a sample of 20 observations of the model Yi = a+BXi +ui, where the errors are such that ui~ N(0,02) e independent and

Consider a sample of 20 observations of the model Yi = a+BXi +ui, where the errors are such that ui~ N(0,02) e independent and identically distributed. This sample yields the following data: EYI = 21.9; (Yi-Y )2 = 86.9; (Yi-Y)(XI-X) = 106.4; EXi = 186.2; E(Xi -X)2 = 215.4. a) Find the estimators a^ and B^. b) Find the estimated standard deviations for a^ and B. c) Area and B statistically different from zero at the 95% confidence level? With a confidence level of 99%?

Step by Step Solution

3.45 Rating (161 Votes )

There are 3 Steps involved in it

Step: 1

a here Yi Y Xi XXi X2 106421540494 and a Yi BEXi 2192004941862... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Econometrics

Authors: James H. Stock, Mark W. Watson

3rd edition

133595420, 978-0138009007, 138009007, 978-0133486872, 133486877, 978-0133595420

More Books

Students also viewed these Mathematics questions