Consider the forecasting model with a simple, linear trend: It = B1 + B2t + Et Where t is the index for t = 1, 2, ..., T. The OLS estimator of B1, B2 is: E (t – ¥t)(t – t) B2 = Where "bars" standards for the sample mean e.g. t = E-1 Yt. a Using those formulas, derive the OLS estimator of the regression yt = a1+ a2(t – 1) +€t. Compare to Bị and B2. 81 + 82t + ɛt. b Again, using those formulas, derive the OLS estimator of the regression yt/1000 Compare to 31 and B2.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
Consider the forecasting model with a simple, linear trend:
It = ß1 + Bzt + et
Where t is the index for t = 1, 2, ..., T. The OLS estimator of B1, B2 is:
E (4t – Ht)(t – t)
B2 =
Bi = y – Bạf
Where "bars" standards for the sample mean e.g. t = E-1 Yt.
a Using those formulas, derive the OLS estimator of the regression yt = a1+a2(t – 1) + Et. Compare to
Bị and B2.
81 + 82t + ɛt.
b Again, using those formulas, derive the OLS estimator of the regression Yt/1000
Compare to B1 and B2.
Transcribed Image Text:Consider the forecasting model with a simple, linear trend: It = ß1 + Bzt + et Where t is the index for t = 1, 2, ..., T. The OLS estimator of B1, B2 is: E (4t – Ht)(t – t) B2 = Bi = y – Bạf Where "bars" standards for the sample mean e.g. t = E-1 Yt. a Using those formulas, derive the OLS estimator of the regression yt = a1+a2(t – 1) + Et. Compare to Bị and B2. 81 + 82t + ɛt. b Again, using those formulas, derive the OLS estimator of the regression Yt/1000 Compare to B1 and B2.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman