Consider the following models: Model I: Y i = 1 + 2 X i +
Question:
Consider the following models:
Model I: Yi = β1 + β2Xi + ui
Model II: Y*i α1 + α2X∗i + ui
where Y* and X* are standardized variables. Show that α̂2 = β̂2(Sx/Sy ) and hence establish that although the regression slope coefficients are independent of the change of origin they are not independent of the change of scale.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (11 reviews)
For Model I we know that 2 x i y i x i 2 ...View the full answer
Answered By
Mehwish Aziz
What I have learnt in my 8 years experience of tutoring is that you really need to have a friendly relationship with your students so they can come to you with their queries without any hesitation. I am quite hardworking and I have strong work ethics. Since I had never been one of those who always top in the class and always get A* no matter what, I can understand the fear of failure and can relate with my students at so many levels. I had always been one of those who had to work really hard to get decent grades. I am forever grateful to some of the amazing teachers that I have had who made learning one, and owing to whom I was able to get some extraordinary grades and get into one of the most prestigious universities of the country. Inspired by those same teachers, I am to be like one of them - who never gives up on her students and always believe in them!
5.00+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Consider the following models: ln Y i = 1 + 2 ln X i + u i ln Y i = 1 + 2 ln X i + u i where Y i = w 1 Y i and X i = w 2 X i , the ws being constants. a. Establish the relationships between...
-
Consider the following models. a. Will OLS estimates of α 1 and β 1 be the same? Why? b. Will OLS estimates of α 3 and β 3 be the same? Why? c....
-
Consider the following model: Y i = e 1+2Xi / (1 + e 1+2Xi ) As it stands, is this a linear regression model? If not, what trick, if any, can you use to make it a linear regression model? How would...
-
Line A: y = 3 0.6x Line B: y = 4 x a. Graph the linear equations and data points. b. Construct tables for x, y, Ëy, e, and e 2 similar to Table 4.4 on page 151. c. Determine which line fits the...
-
Database recovery can be a very complex task that is prone to errors and difficult to manage. What are some steps to consider before initiating the recovery after a failure?
-
Germany-based Adidas is one of the worlds largest producers of sportswear. On March 15, 2018, one day after the publication of Adidass 2017 financial statements, an analyst produces a set of...
-
Applying Rayleigh's method, determine the fundamental frequency of a cantilever beam (fixed at \(x=l\) ) whose cross-sectional area \(A(x)\) and moment of inertia \(I(x)\) vary as \(A(x)=A_{0} x /...
-
C. Ray Gullet (Personnel Management in the Project Organization, Personnel Administration/Public Personnel Review, NovemberDecember 1972, pp. 1722) has identified five personnel problems. How would...
-
Create the flowchart based on ERD Diagram to represent workflow . Give some explanation to make me understand. CUSTOMER PK CUST_ID VARCHAR(45) CUST_FIRSTNAME VARCHAR(45) CUST LASTNAME VARCHAR(45)...
-
As part of your company's annual performance review process, each employee must identify three coworkers to be interviewed by his manager to get a perspective on the employee's overall work...
-
Go to www.moveon.org. What is the main variable that this site uses to segment the American public? What is the resulting segment to which this site is attempting to appeal? Extensively, describe...
-
The following regression results were based on monthly data over the period January 1978 to December 1987: Y t = 0.00681 ................... + 0.75815X t se = (0.02596) .................. (0.27009) t...
-
German Resources is involved in coal mining. The company is currently profitable and is expected to pay a dividend of 4 per share next year. The company has suspended exploration, however, and...
-
Taxpayer Edna brings her tax documents to the site. She completes Form 13614-C, Intake Interview and Quality Review Sheet. She indicates in Part III of Form 13614-C that she has self-employment...
-
Total assets $1,030,000 Total liabilities 618,000 Total stockholders' equity ? Interest expense $ 20,000 Income tax expense 110,000 Net income 157,000 (a) Compute the December 31, 2022, balance in...
-
Havana Hats makes the world's best hats. Information for the last eight months follows: Number of Hats Month January Produced Total Cost 1,800 $ 9,000 February 4,890 15,648 March 2,300 10,350 April...
-
Port Company purchased 30,000 of the 100,000 outstanding shares of Sund Company common stock on January 1, 20X2, for $180,000. The purchase price was equal to the book value of the shares purchased....
-
On January 1 of its first month of business, Juan in a Million, Inc., paid $48,000 for four months rent beginning in January. How much will be reported as Rent Expense on its income statement for the...
-
Solve the following problems using the method of your choice. w'(t) = 2t cos 2 w, w(0) = /4
-
D Which of the following is considered part of the Controlling activity of managerial accounting? O Choosing to purchase raw materials from one supplier versus another O Choosing the allocation base...
-
Explain why a customer might be willing to work more cooperatively with a small number of suppliers rather than pitting suppliers in a competition against each other. Give an example that illustrates...
-
Would a tool manufacturer need a different marketing strategy for a big retail chain like Home Depot than for a single hardware store run by its owner? Discuss your answer.
-
How do you think a furniture manufacturers buying habits and practices would be affected by the specific type of product to be purchased? Consider fabric for upholstered furniture, a lathe for the...
-
In Buffett s Idaho speech, he said that the advent of the auto meant the death of horses as a form of transport. Can you come up with 1 example or a change you see today and how that could mean...
-
George is leading an effort in your company to use Ubuntu for all servers being used in the production environment. Explain the steps that he would take for deploying the latest version of the Ubuntu...
-
a) Consider two aircraft A and B flying at a constant altitude, A travelling due north at 120 ms-1 and B travelling 30 east of north, written N 30 E, at 200 ms-1. Determine, by scaled graphical...
Study smarter with the SolutionInn App