(Yj, Xqj, X2i) satisfy the following assumptions ; in addition, var(u,X1j, X2i) =3 and var (Xi) = 4. A random sample of size n = 397 is drawn from the population. Use the formula below to answer the following questions, 1 Assume that X, and X, are uncorrelated. Compute the variance of B1- The variance of 8, is,

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question

7

(Yj, X4i, X2i) satisfy the following assumptions ; in addition, var(u;|X1i, X2i) = 3 and var (X1;) = 4. A random sample of sizen = 397 is drawn from the population. Use the formula below to answer the following questions,
1
n 1-
Assume that X, and X, are uncorrelated. Compute the variance of B1.
The variance of B is,
(Round your response to five decimal places)
Assume that corr(X1, X2) = 0.48. Compute the variance of B1.
The variance of B is,
(Round your response to five decimal places)
Which of the following statements is correct?
O A. The larger the correlation between X4 and X2, the larger the variance of B4. Nevertheless, it is best include X, in the regression if it is a determinant of Y.
O B. The larger the correlation between X4 and X2, the smaller the variance of B1. Thus, it is best to leave X, out of the regression even if it is a determinant of Y.
OC. The larger the correlation between X, and X2, the larger the variance of ß1. Thus, it is best to leave X, out of the regression even if it is a determinant of Y.
O D. The larger the correlation between X, and X2, the smaller the variance of B1. Nevertheless, it is best include X, in the regression if it is a determinant of Y.
Transcribed Image Text:(Yj, X4i, X2i) satisfy the following assumptions ; in addition, var(u;|X1i, X2i) = 3 and var (X1;) = 4. A random sample of sizen = 397 is drawn from the population. Use the formula below to answer the following questions, 1 n 1- Assume that X, and X, are uncorrelated. Compute the variance of B1. The variance of B is, (Round your response to five decimal places) Assume that corr(X1, X2) = 0.48. Compute the variance of B1. The variance of B is, (Round your response to five decimal places) Which of the following statements is correct? O A. The larger the correlation between X4 and X2, the larger the variance of B4. Nevertheless, it is best include X, in the regression if it is a determinant of Y. O B. The larger the correlation between X4 and X2, the smaller the variance of B1. Thus, it is best to leave X, out of the regression even if it is a determinant of Y. OC. The larger the correlation between X, and X2, the larger the variance of ß1. Thus, it is best to leave X, out of the regression even if it is a determinant of Y. O D. The larger the correlation between X, and X2, the smaller the variance of B1. Nevertheless, it is best include X, in the regression if it is a determinant of Y.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman