Suppose that you have the following three regression models: Yi = B₁ + B₂xi + Ui regression) Yi = a₁ + a₂x; + eį, if i is male male individuals) Yi = V₁ + V2£i + €;, if i is female (separate regression for female individuals) ESS RSS The error terms satisfies that E[u;] = E[€;] = E[e;] = 0. Then, we find the following RSS and ESS: Pooled Regression 124.3 25 (separate regression for (pooled 71.1 11.4 separate separate regression for regression for male individuals female individuals 56.6 8.6 The number of sample size is given by 18. Select the correct statement(s). The RSS from the pooled regression is always smaller than the sum of RSSS from the separate regression models. In the above setup, Chow test is equal to 2. If e; is correlated with €₁, then the OLS estimator of a₂ from the separate regression will be is biased. If the variances of e; is different from €;, then the OLS estimator of B2 is no longer unbiased estimator. If we add another variable z; to the pooled regression, then the R² in the pooled regression will be increased.

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Suppose that you have the following three regression models:
Yi B₁ + B₂x₁ + Uj
regression)
Y₁ = a₁ + a₂x₁ + eį, if i is male
male individuals)
Yi = ₁ + ₂x₁ + Ei, if i is female (separate regression for
female individuals)
ESS
RSS
The error terms satisfies that E[ui] = E[ei] = E[ei] = 0. Then, we
find the following RSS and ESS:
Pooled
Regression
124.3
25
(separate regression for
(pooled
71.1
11.4
separate
separate
regression for regression for
male individuals female
individuals
56.6
8.6
The number of sample size is given by 18. Select the correct
statement(s).
The RSS from the pooled regression is always smaller than the sum of
RSSS from the separate regression models.
In the above setup, Chow test is equal to 2.
If e; is correlated with €;, then the OLS estimator of a2 from the separate
regression will be is biased.
If the variances of e; is different from €;, then the OLS estimator of 3₂ is
no longer unbiased estimator.
If we add another variable z; to the pooled regression, then the R² in the
pooled regression will be increased.
Transcribed Image Text:Suppose that you have the following three regression models: Yi B₁ + B₂x₁ + Uj regression) Y₁ = a₁ + a₂x₁ + eį, if i is male male individuals) Yi = ₁ + ₂x₁ + Ei, if i is female (separate regression for female individuals) ESS RSS The error terms satisfies that E[ui] = E[ei] = E[ei] = 0. Then, we find the following RSS and ESS: Pooled Regression 124.3 25 (separate regression for (pooled 71.1 11.4 separate separate regression for regression for male individuals female individuals 56.6 8.6 The number of sample size is given by 18. Select the correct statement(s). The RSS from the pooled regression is always smaller than the sum of RSSS from the separate regression models. In the above setup, Chow test is equal to 2. If e; is correlated with €;, then the OLS estimator of a2 from the separate regression will be is biased. If the variances of e; is different from €;, then the OLS estimator of 3₂ is no longer unbiased estimator. If we add another variable z; to the pooled regression, then the R² in the pooled regression will be increased.
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