i XiCT CONTI12-0.751.30-1.551.25As a reminder: When calculating answers, please use at least 4 decimals for intermediate calculations.135793 54 75Yi-2.509 14. Which expression best describes the ordinary least squares estimate for 3₁?(a)b₁ = -11.111(b)b₁ = 2.985(c)b₁ = 0(d)b₁ = -2.125(e)b₁ = 0.335

We have been given the following data,ixiyi11-2.523-0.75351.347-1.55591.25Here x is the independent variable or regressor and y is the dependent variable or regressand.The population regression function is The sample regression function is Here b1 is known as an ordinary least square estimate of β1.Formula of b1:Here x¯ ,y¯ are the means of independent variable and dependent variable.xiyixi−x¯y1−y¯(xi−x¯)(yi−y¯)(xi−x¯)21-2.5-4-2.058.2163-0.75-2-0.30.6451.301.75007-1.552-1.1-2.2491.2541.76.816∑xi=25∑yi=-2.25∑(xi−x¯)(yi−y¯)=13.4∑(xi−x¯)2=40Putting value in the formulaThe value of option e matched with correct value of b1 so option e is correct and other options are incorrect. Option (e) is correct. b1=0.335

Answered: Which expression best describes the…

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Which expression best describes the ordinary least squares estimate for B₁? (a) b₁ = -11.111 (b) b₁ = 2.985 (c) b₁ = 0 (d) b₁ = 2.125 (e) b₁ = 0.335

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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