The following code chunk generates a data set of size n of realizations of the random variables u, x and y. Throughout the exercise, do not modify the set.seed(123) line. set.seed (123) n <- 20 u <- rnorm(n) X <- rnorm(n, mean = 10, sd = 0.5) beta_0 <- 5 beta_1 <- 10 y <- beta_0 + beta_1*x + u
The following code chunk generates a data set of size n of realizations of the random variables u, x and y. Throughout the exercise, do not modify the set.seed(123) line. set.seed (123) n <- 20 u <- rnorm(n) X <- rnorm(n, mean = 10, sd = 0.5) beta_0 <- 5 beta_1 <- 10 y <- beta_0 + beta_1*x + u
Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
Section: Chapter Questions
Problem 1PE
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Question
7.
![The following code chunk generates a data set of size n of realizations of the random variables u , x and y. Throughout the exercise, do not
modify the set.seed(123) line.
set.seed (123)
n <- 20
u <- rnorm(n)
X <- rnorm(n, mean = 10, sd = 0.5)
beta_0 <- 5
beta_1 <- 10
y <- beta_0 + beta_1*x + u
(a.)
Compute the OLS estimates of Bo and B1. Call them beta0_hat and beta1_hat respectively. (2 points)
Answer:
# Answer here](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F561969a7-5252-46ab-a531-d9ddc2bf339b%2F7dc1f759-eee0-44fe-a15b-9b407ec8196b%2Fipfu16_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following code chunk generates a data set of size n of realizations of the random variables u , x and y. Throughout the exercise, do not
modify the set.seed(123) line.
set.seed (123)
n <- 20
u <- rnorm(n)
X <- rnorm(n, mean = 10, sd = 0.5)
beta_0 <- 5
beta_1 <- 10
y <- beta_0 + beta_1*x + u
(a.)
Compute the OLS estimates of Bo and B1. Call them beta0_hat and beta1_hat respectively. (2 points)
Answer:
# Answer here
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