Consider the linear regression model Y; = Bo + B1 X¡ + U¡ for each i = 1,... , n. Suppose we estimate ßo and ß1 by running an OLS regression. What does th OLS residual U; represent? a. Üj is the predicted value of Y; when X¡ = 0 O b. Ü; is the difference between Y; and the OLS predicted value of Y; c. Uj is the square root of the slope coefficient O d. Ü, is the difference between Y, and ! E" Y,

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Consider the linear regression model Y; = Bo + B1 X¡ + U¡ for each i
OLS residual U represent?
1,..., n. Suppose we estimate Bo and B1 by running an OLS regression. What does the
a. U; is the predicted value of Y; when X; = 0
b. U; is the difference between Y; and the OLS predicted value of Y;
c. U; is the square root of the slope coefficient
d. Üj is the difference between Y; and , Y;
n
i=1
Transcribed Image Text:Consider the linear regression model Y; = Bo + B1 X¡ + U¡ for each i OLS residual U represent? 1,..., n. Suppose we estimate Bo and B1 by running an OLS regression. What does the a. U; is the predicted value of Y; when X; = 0 b. U; is the difference between Y; and the OLS predicted value of Y; c. U; is the square root of the slope coefficient d. Üj is the difference between Y; and , Y; n i=1
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