Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the simple linear regression Y; = Bo + X;B1 + ;, where X; takes value 0 and 1, so that X; = 1

Consider the simple linear regression Y; = Bo + X;B1 + ;, where X; takes value 0 and 1, so that X; = 1 if the ith subject is in group 1, and X; = 0 if the ith subject is in group 2. 1. Using the OLS formula for B1 and Bo, show that Bo is the sample average for group 2 and B1 is the difference of the sample averages for group 1 and group 2. 2. Show that the test for B1 is as the same as the two sample t-test with pooled variance, (i.e., when equal variance is assumed). Hint: show that the formula of the variance for B1 is equivalent to the formula of the pooled sample variance.

Step by Step Solution

3.36 Rating (143 Votes )

There are 3 Steps involved in it

Step: 1

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

Document Format ( 2 attachments)

PDF file Icon
6362a40c62f14_237048.pdf

180 KBs PDF File

Word file Icon
6362a40c62f14_237048.docx

120 KBs Word File

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

Probability And Statistics For Engineering And The Sciences

Authors: Jay L. Devore

9th Edition

1305251806, 978-1305251809

More Books

Students also viewed these Mathematics questions