Regression through the origin. Consider the following regression through the origin: Y i = 2 X
Question:
Regression through the origin. Consider the following regression through the origin:
Yi = β̂2X2i + β̂3X3i + ûi
a. How would you go about estimating the unknowns?
b. Will Σûi be zero for this model? Why or why not?
c. Will Σûi X2i = Σûi X3i = 0 for this model?
d. When would you use such a model?
e. Can you generalize your results to the k-variable model?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (13 reviews)
a The normal equations would be b No for the sa...View the full answer
Answered By
Jehal Shah
I believe everyone should try to be strong at logic and have good reading habit. Because If you possess these two skills, no matter what difficult situation is, you will definitely find a perfect solution out of it. While logical ability gives you to understand complex problems and concepts quite easily, reading habit gives you an open mind and holistic approach to see much bigger picture.
So guys, I always try to explain any concept keeping these two points in my mind. So that you will never forget any more importantly get bored.
Last but not the least, I am finance enthusiast. Big fan of Warren buffet for long term focus investing approach. On the same side derivatives is the segment I possess expertise.
If you have any finacne related doubt, do reach me out.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Consider the following regression-through-the origin model: Yi = X i + u i , for i = 1, 2 You are told that u1 N(0, 2 ) and u 2 N(0, 2 2 ) and that they are statistically independent. If X 1 =+1...
-
How would you go about deciding if COPPA has been effective?
-
How would you go about combining individual and group-based PFP systems?
-
John Black is considering to purchasing a land from Real Estate Ltd for $1,000,000. The terms of the agreement are, 10% down payment, and the balance is to be repaid at 20% interest for duration of...
-
Fab Manufacturing Corporation manufactures and sells stainless steel coffee mugs. Expected mug sales at Fab (in units) for the next three months are as follows: __________________________ October...
-
What are jock taxes? How is Tennessees jock tax unique?
-
a. Longitudinal vibration of a bar b. Torsional vibration of a shaft c. Transverse vibration of a string \(c=\left(\frac{P}{ho} ight)^{1 / 2}\) Data:- \(c^{2} \frac{\partial^{2} w}{\partial...
-
Crone Enterprises uses a word processing computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with...
-
The following information was drawn from the balance sheets of the Kansas and Montana companies: Kansas Current assets Current liabilities $ 56,000 29,400 Montana $ 80,000 32,000 Required a. Compute...
-
Write an HTML document to create a form that collects favorite popular songs, including the name of the song, the composer, and the performing artist or group. This document must call one PHP script...
-
Is the distribution of the number of HIV positive among the 20 users binomial? Why or why not? Infectious Disease A study considered risk factors for HIV infection among intravenous drug users [11]....
-
Suppose you express the CobbDouglas model given in Eq. (7.9.1) as follows: Y i = β 1 Xβ 2 2i X β 3 3i u i If you take the log-transform of this model, you will...
-
This healthcare organization provides a wide array of services including inpatient services, transitional care services, and outpatient treatment and testing. A few years ago, the facility changed...
-
Bank Negara Malaysia would like to keep interest rates low, but the continuing Covid-19 endemic makes the outlook for the economy very uncertain and considering the pro and cons of taking Malaysia...
-
Sri Lanka debt crisis was due to the economic mismanagement. Sri Lanka's current debt to GDP had skyrocketed from 42% in 2019 to 104% in 2021.According to Bloomberg, Sri Lanka has about $8.6 billion...
-
Your grandpa has $550,000 in his account and he needs to receive monthly payments of $55,000. If he receives the payments at the end of the month, and the current interest rate is 17 percent,...
-
Van Duzer explains that one of the consequences of the Fall on the nature of work is that people are working harder at a faster pace, not being able to take a pause, under the influence of increasing...
-
Discuss the 4 types of dividends.Whichof the 4 isused most often, and why?What may happen to a company's share price when dividends areannounced orpaid?Why do you think this is so?
-
Evaluate the following integrals.
-
Before the latest financial crisis and recession, when was the largest recession of the past 50 years, and what was the cumulative loss in output over the course of the slowdown?
-
Why would intermediaries want to be exclusive distributors for a product? Why would producers want exclusive distribution? Would intermediaries be equally anxious to get exclusive distribution for...
-
Explain the present legal status of exclusive distribution. Describe a situation where exclusive distribution is almost sure to be legal. Describe the nature and size of competitors and the industry,...
-
Discuss the promotion a new grocery products producer would need in order to d e velop appropriate channels and move products through those channels. Would the nature of this job change for a new...
-
(a) What is the kinetic energy in joules of a 1140-kg automobile traveling at 93 km/h? (b) How much work would have to be done to bring a 1140-kg automobile traveling at 93 km/h to a stop? 4. How...
-
A charging RC circuit controls the intermittent windshield wipers in a car. The emf is 12.0 V. The wipers are triggered when the voltage across the 120F capacitor reaches 12.0 V; then the capacitor...
-
A block of mass 2 kg is attached to a spring with a spring constant of 100 N/m. The block is released from rest and moves along a rough horizontal surface with a coefficient of friction of 0.2. How...
Study smarter with the SolutionInn App