7. The components of the OLS variances Under assumptions MLR.1 through MLR.5, conditional on the sample values of the independent variables, the variance of B; under OLS is: Var (6) = sen( ) ssr,(1-1E) where o = the variance of the error term SST; = the total sample variation of a; R = the R-squared from a regression of I, on all of the other explanatory variables, along with an intercept parameter The variance of Bj as R i ncreases. For the given model, which of the following would lead to a reduction of the sampling variance of B;? O using the same data set with the same number of observations O Choosing an explanatory variable Ik that is uncorrelated with the other explanatory variables in the model Adding irrelevant explanatory variables to the model that are correlated with a; Adding an explanatory variable that is equal to 5+1j
7. The components of the OLS variances Under assumptions MLR.1 through MLR.5, conditional on the sample values of the independent variables, the variance of B; under OLS is: Var (6) = sen( ) ssr,(1-1E) where o = the variance of the error term SST; = the total sample variation of a; R = the R-squared from a regression of I, on all of the other explanatory variables, along with an intercept parameter The variance of Bj as R i ncreases. For the given model, which of the following would lead to a reduction of the sampling variance of B;? O using the same data set with the same number of observations O Choosing an explanatory variable Ik that is uncorrelated with the other explanatory variables in the model Adding irrelevant explanatory variables to the model that are correlated with a; Adding an explanatory variable that is equal to 5+1j
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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![7. The components of the OLS variances
Under assumptions MLR.1 through MLR.5, conditional on the sample values of the independent variables, the variance of B; under OLS is:
Var (5) = st )
SST;(1-R£)
where
o? = the variance of the error term
SST; = the total sample variation of 1;
R = the R-squared from a regression of I; on all of the other explanatory variables, along with an intercept parameter
%3D
The variance of Bj.
as R; increases.
For the given model, which of the following would lead to a reduction of the sampling variance of B;?
Using the same data set with the same number of observations
O choosing an explanatory variable Ik that is uncorrelated
the other explanatory variables in the model
Adding irrelevant explanatory variables to the model that are correlated with I;
Adding an explanatory variable that is equal to 5+1;](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7e0b64e3-58c0-41ae-86cd-02c24b30faf3%2F20b6b6bb-1527-4a1e-b74c-9054bba1cbfd%2Fzhr4l34_processed.jpeg&w=3840&q=75)
Transcribed Image Text:7. The components of the OLS variances
Under assumptions MLR.1 through MLR.5, conditional on the sample values of the independent variables, the variance of B; under OLS is:
Var (5) = st )
SST;(1-R£)
where
o? = the variance of the error term
SST; = the total sample variation of 1;
R = the R-squared from a regression of I; on all of the other explanatory variables, along with an intercept parameter
%3D
The variance of Bj.
as R; increases.
For the given model, which of the following would lead to a reduction of the sampling variance of B;?
Using the same data set with the same number of observations
O choosing an explanatory variable Ik that is uncorrelated
the other explanatory variables in the model
Adding irrelevant explanatory variables to the model that are correlated with I;
Adding an explanatory variable that is equal to 5+1;
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