5. A simple linear regression model with zero intercept term is specified as: y, = B,x; +ɛ, where ɛ is the error term This is a simple linear regression model through the origin and the OLS estimator of its slope is given as follows: ΣΧΥ B, = Note: You can derive this estimator of the slope using the same techniques we used in-class to derive the OLS estimators for the slope and intercept of the simple linear regression model with non-zero intercept. a. Assuming that this simple linear regression model fulfills all the classical assumptions we discussed in class, please show that the OLS estimator of its slope given above is an unbiased estimator. [Hint: Use the same technique we used in class to demonstrate the
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
![5. A simple linear regression model with zero intercept term is specified as:
y; = B,x, +E,
where ɛ is the error term
This is a simple linear regression model through the origin and the OLS estimator of its slope
is given as follows:
Σχ
ΣΧ
Note: You can derive this estimator of the slope using the same techniques we used in-class
to derive the OLS estimators for the slope and intercept of the simple linear regression model
with non-zero intercept.
a. Assuming that this simple linear regression model fulfills all the classical assumptions we
discussed in class, please show that the OLS estimator of its slope given above is an
unbiased estimator. [Hint: Use the same technique we used in class to demonstrate the
unbiasedness of the OLS estimator of the slope for a model with non-zero intercept.]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2f0f75c0-3249-407a-add1-ee5a7c3bf05e%2F3751ac6f-4073-4c0d-877f-3aa3d7437162%2F1fxqvfs_processed.png&w=3840&q=75)
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