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Recall that when a y variable is regressed against a constant and no variables, the OLS estimate of the constant term of the regression, alpha-hat,
Recall that when a y variable is regressed against a constant and no variables, the OLS estimate of the constant term of the regression, alpha-hat, is simply y-bar, the sample mean of y. Keeping that in mind, suppose we regress the GDP per capita of 625 subnational jurisdictions against a constant and no variables, and that the mean and standard deviation of GDP per capita across all subnational jurisdictions are 15.52 and 8.08 in thousands of dollars, respectively. What is the standard deviation of alpha-hat in thousands of dollars? Give your answer to two decimal places. (Hint: You do not need to know anything about regression to answer this question.)
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