7. Consider the simple linear regression given byY₁ =B1+ B2X+uiBut instead of assuming E(u|x) = 0, suppose one assume E(u|x) = 3 ObtainOLS estimator B1,B2.

When the error term has a non-zero conditional mean, the standard assumptions of the classical…

Answered: 7. Consider the simple linear…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Consider a dataset with 25 observations and a multiple linear regression model with 4 independent variables. Assume you have estimated the parameters in the model and you find that SSE = 2,389.75 and the SSR = 12,125.25 Find the range that best represents the value of adjusted r-squared, R². (a) R² < 0.80 (b) (c) (d) (e) 0.80 ≤ R² < 0.85 0.85 ≤ R² < 0.90 0.90 ≤ R² < 0.95 0.95 ≤ R²
c) Give the expression of R˜^2 in terms of R^2 , and justify your answer.
Tom has been gathering data concerning the cost of a spa treatment, y', during the before Valentine's Day. The only independent variable that he has considered is the number of minutes, "x," in the treatment. Suppose Tom collects data on the relationship between the number of minutes in a treatment and the resulting cost of we the treatment. Tom finds that the correlation between cost and number of minutes is strong and positive. Therefore, he has performed a linear regression analysis on his data. His results are that the constant "a" is 35, and the coefficient "b1" for the independent variable is 1.3. Which of the following is the correct linear regression equation that would allow Tom to predict the cost of a spa treatment given the number of minutes? Oy = 78x + 35 Oy' = 1.3x + 35 %3D Oy = 78x - 1.3 %3D OY = -1.3x - 35
Hormone replacement therapy (HRT) is thought to increase the risk of breast cancer. The accompanying data on x = percent of women using HRT and y = breast cancer incidence (cases per 100,000 women) for a region in Germany for 5 years appeared in the paper "Decline in Breast Cancer Incidence after Decrease in Utilization of Hormone Replacement Therapy." The authors of the paper used a simple linear regression model to describe the relationship between HRT use and breast cancer incidence. t HRT Use Breast Cancer Incidence 46.30 40.60 39.50 36.60 30.00 103.30 105.00 100.00 93.80 83.50 (a) What is the equation of the estimated regression line? (Round your numerical values to four decimal places.) ŷ = (b) What is the estimated average change in breast cancer incidence (in cases per 100,000 women) associated with a 1 percentage point increase in HRT use? (Round your answer to four decimal places.) cases per 100,000 women (c) What breast cancer incidence (in cases per 100,000 women) would be…
The coefficients in a distributed lag regression of Y on X and its lags can be interpreted as the dynamic causal effects when the time path of X is determined randomly and independently of other factors that influence Y. Explain How?
Suppose that you run a regression of Y, on X, with 110 observations and obtain an estimate for the slope. Your estimate for the standard error of ₁ is 1. You are considering two different hypothesis tests: The first is a one-sided test: Ho: B1-0, Ha: 31>0, a = .05 The second is a two-sided test: Ho: 31-0, Ha: B1 0,a = .05 (a) What values of , would lead you to reject the null hypothesis in the one-sided test? (b) What values of , would lead you to reject the null hypothesis in the one-sided test? (c) What values of would lead you to reject the mill hypothesis in the one-sided test, but not the two-sided test? (d) What values of 3 would lead you to reject the null hypothesis in the two-sided test, but not the one-sided test?
The marketing manager wants to estimate the effect of the MBA program on Salary controlling for the other factors. Which regression model is the MOST appropriate? Oa. Salary = B_0+B_1 MBA + ε Ob. Salary = 3_0+ B_1 MBA + B_2 Work + e c. Salary = B_0+B_1 MBA+B_2 Work + B_3 Age +8 Od. Salary = B_0+ B_1 MBA + B_2 Work + B_3 Age +B_4 Gender + ε
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please show work
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A statistics student is asked to estimate Y = Bo + B1X + E. She calculates the following values: Ex = 280, Σ(x₁ - x)² = 350, Σy, = 600, Σ(y, − y) = 1000 Σ(x,x)(y₁ - y) = -630, n = 20 Which of the following is the sample regression equation? OY--55.2-1.8X + e OY 55.2 +1.8X + e OY-55.2+1.8X + e OY 55.2 1.8X + e

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7. Consider the simple linear regression given by Y₁ =B1+ B2X+ui But instead of assuming E(ur) = 0, suppose one assume E(u|x) = 3 Obtain OLS estimator B1,B2.