Given the following two linear regression models: = 1+ 2+ (1) = 1 + (2)where Y is the dependent variable, and X is the independent variable. Both u and v are random variables, and 1, 2, 1 and 2 are model parameters. Conduct OLS regression with the above two models, respectively.1) What is the economic meaning of 1? 2) At what circumstance Equation (1) is the same as Equation (2). how to do a hypothesis test on this?3) Are the R2 of the two models identical, if not, which one is bigger?4) In equation (1), given an observation 0, how to calculate the expected 0, E[0]? 5) In equation (1), if one variable is omitted, at what circumstance the estimation of 2 is still unbiased?
Given the following two linear regression models: = 1+ 2+ (1) = 1 + (2)where Y is the dependent variable, and X is the independent variable. Both u and v are random variables, and 1, 2, 1 and 2 are model parameters. Conduct OLS regression with the above two models, respectively.1) What is the economic meaning of 1? 2) At what circumstance Equation (1) is the same as Equation (2). how to do a hypothesis test on this?3) Are the R2 of the two models identical, if not, which one is bigger?4) In equation (1), given an observation 0, how to calculate the expected 0, E[0]? 5) In equation (1), if one variable is omitted, at what circumstance the estimation of 2 is still unbiased?
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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![Given the following two linear regression models:= 1 + 2 + (1) = 1 + (2)where
Y is the dependent variable, and X is the independent variable. Both u and v are
random variables, and 1, 2, 1 and 2 are model parameters. Conduct OLS
regression with the above two models, respectively.1) What is the economic
meaning of 1 ? 2) At what circumstance Equation (1) is the same as Equation (2),
how to do a hypothesis test on this?3) Are the R2 of the two models identical, if
not, which one is bigger?4) In equation (1), given an observation 0, how to
calculate the expected 0, E[0]? 5) In equation (1), if one variable is omitted, at
what circumstance the estimation of 2 is still unbiased?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff4cf8db3-c4c5-4f31-8215-092f4340668c%2F2a7cc8e5-4f7f-4e72-979d-c34db6323b4e%2Fuq8ig4_processed.png&w=3840&q=75)
Transcribed Image Text:Given the following two linear regression models:= 1 + 2 + (1) = 1 + (2)where
Y is the dependent variable, and X is the independent variable. Both u and v are
random variables, and 1, 2, 1 and 2 are model parameters. Conduct OLS
regression with the above two models, respectively.1) What is the economic
meaning of 1 ? 2) At what circumstance Equation (1) is the same as Equation (2),
how to do a hypothesis test on this?3) Are the R2 of the two models identical, if
not, which one is bigger?4) In equation (1), given an observation 0, how to
calculate the expected 0, E[0]? 5) In equation (1), if one variable is omitted, at
what circumstance the estimation of 2 is still unbiased?
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