Consider the multiple regression of y on K variablesXand an additional variable z. Prove that under the
Question:
Consider the multiple regression of y on K variablesXand an additional variable z. Prove that under the assumptions A1 through A6 of the classical regression model, the true variance of the least squares estimator of the slopes on X is larger when z is included in the regression than when it is not. Does the same hold for the sample estimate of this covariance matrix? Why or why not? Assume that X and z are nonstochastic and that the coefficient on z is nonzero.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (8 reviews)
We consider two regressions In the first y is regressed on K variables X The variance of the least squares estimator b XX Xy Varb oXX In the second y ...View the full answer
Answered By
Muhammad adeel
I am a professional Process/Mechanical engineer having a vast 7 years experience in process industry as well as in academic studies as a instructor. Also equipped with Nebosh IGC and lead auditor (certified).
Having worked at top notch engineering firms, i possess abilities such as designing process equipment, maintaining data sheets, working on projects, technical biddings, designing PFD and PID's etc.
Having worked as an instructor in different engineering institutes and have been involved in different engineering resrearch projects such as refinery equipment designing, thermodynamics, fluid dynamics, chemistry, rotary equipment etc
I can assure a good job within your budget and time deadline
4.90+
52+ Reviews
60+ Question Solved
Related Book For
Question Posted:
Students also viewed these Econometric questions
-
Consider the multiple regression of y on K variables X and an additional variable z. Prove that under the assumptions A1 through A6 of the classical regression model, the true variance of the least...
-
Show that in the multiple regression of y on a constant, x1 and x2 while imposing the restriction 1 + 2 = 1 leads to the regression of y x1 on a constant and x2 x1.
-
Show that in the multiple regression of y on a constant, x 1 and x 2 while imposing the restriction 1 + 2 = 1 leads to the regression of y x 1 on a constant and x 2 x 1 .
-
Dream House Builders, Inc. applies overhead by linking it to direct labor. At the start of the current period, management predicts total direct labor costs of $100,000 and total overhead costs of...
-
In Figure 14.3, we calculated the book and market long-term debt-to-equity ratios of George Weston Ltd. Using Enbridge's annual report calculate the company's book long-term debt-to-equity ratio for...
-
Recent research has demonstrated that music-based physical training for elderly people can improve balance and walking efficiency and reduce the risk of falls (Trombetti et al., 2011). As part of the...
-
The composite bar system in Figure 1.48 consists of a steel bar and a bronze bar that are both securely attached to a rigid block and rigid supports. The system is loaded with a total load P at the...
-
George Parker was paid a salary of $74,700 during 2013 by Umberger Company. In addition, during the year, Parker started his own business as a public accountant and reported a net business income of...
-
Problem #4: Air at 100 kPa and 300 K flows steadily through a square duct with side length of 0.5 m. The air enters with a uniform speed of 5 m/s. An electric surface heating element is attached to...
-
Sage Inc. bought 40% of Adams Corporations outstanding common stock on January 2, 20X1, for $400,000. The carrying amount of Adamss net assets at the purchase date totaled $900,000. Fair values and...
-
The following sample moments for x = [1, x1, x2, x3] were computed from 100 observations produced using a random number generator:? The true model underlying these data is y = x1 + x2 + x3 + . a....
-
For the classical normal regression model y = X + with no constant term and K regressors, assuming that the true value of is zero, what is the exact expected value of F[K, n K] = (R2/K)/[(1 ...
-
Compare and contrast the structures of the following solids. a. Diamond and graphite b. Silica, silicates, and glass
-
Tina is the sole owner of Tinas Lawn Mowing, Incorporated (TLM). In one year, TLM collects $1,000,000 from customers to mow their lawns. TLMs equipment depreciates in value by $125,000. TLM pays...
-
For fiscal year 2018, Tesco had total revenues of \($485.65\) billion, net income of \($16.36\) billion, total assets of \($203.49\) billion, and total shareholders equity of \($81.39\) billion. a....
-
Velocity Financial, Inc. conducted its IPO on January 17, 2020 for the principal purposes of increasing its capitalization and financial flexibility, creating a public market for its common stock,...
-
Sidney Southern owned a restaurant which was condemned on November 20, 2017. On January 15, 2018, he received a condemnation award of \(\$ 280,000\). The adjusted basis of his restaurant was \(\$...
-
Demonstrate that for a closed path \(\operatorname{Tr} U_{\gamma}(x, x)\) is gauge invariant, where \(U_{\gamma}\left(x_{0}, x_{1} ight)\) is defined by Eq. (26.9).
-
If you slide down a rope, its possible to create enough thermal energy to burn your hands or your legs where they grip the rope. Suppose a 40 kg child slides down a rope at a playground, descending...
-
r = 0.18 Find the coefficients of determination and non-determination and explain the meaning of each.
-
What were some economic impacts of the Great Depression for workers? For businesses?
-
In the aforementioned study, Solow states: A scatter of q/A against k is shown in Chart 4. Considering the amount of a priori doctoring which the raw figures have undergone, the fit is remarkably...
-
A regression model with K = 16 independent variables is fit using a panel of sevenyears of data. The sums of squares for the seven separate regressions and the pooled regression are shown below. The...
-
Reverse regression. A common method of analyzing statistical data to detect discrimination in the workplace is to fit the regression y = + x' + d + , (1) where y is the wage rate and d is a dummy...
-
Welch Corporation just paid its annual dividend of $2.00 per share. The firm is expected to grow at a rate of 15 percent for the next three years and then at 6 percent per year thereafter. The...
-
Reed Company had the following account balances for the current year. Prepare a multiple-step income statement. U Accounts Receivable $ 26,000 Cost of Goods Sold 63,400 Dividends 22,900 General and...
-
Generous Limited has issued a callable bond at 5.35% coupon with 14 years left to maturity can be called in 4 years. The call premium is one year of coupon payments. It is offered for sale at...
Study smarter with the SolutionInn App