Question: A sample of 100 observations produces the following sample data: y 1 = 1, y 2 = 2, y' 1 y 1 = 150, y

A sample of 100 observations produces the following sample data:

y̅1 = 1, y̅2 = 2,
y'1y1 = 150,
y2y2 = 550,
y1y2 = 260.


The underlying bivariate regression model is
y1 = μ + ε1,
y2 = μ + ε2.

a. Compute the OLS estimate of μ, and estimate the sampling variance of this estimator.

b. Compute the FGLS estimate of μ and the sampling variance of the estimator.

Step by Step Solution

★★★★★

3.41 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The model can be written as Therefore the OLS estimator is The samplin... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Econometric Analysis Questions!

Q:

2. [5 pts.] Show the structure of the following table (ORDER) in the outline notation defining a primary key. Draw the dependency diagram, and, on the diagram, specify partial and/or transitive...

Q:

Consider estimation of the following two-equation model:y 1 = 1 + 1 ,y 2 = 2 x + 2 . A sample of 50 observations produces the following moment matrix: a. Write the explicit formula for the GLS...

Q:

In order to test if the population proportion differs from 0.40, you draw a random sample of 100 observations and obtain a sample proportion of 0.48. a. Specify the competing hypotheses. b. Is the...

Q:

The following model is specified:y 1 = 1 y 2 + 11 x 1 + 1 ,y 2 = 2 y 1 + 22 x 2 + 32 x 3 + 2 . All variables are measured as deviations from their means. The sample of 25 observations produces...

Q:

A sample of 100 observations produces the following sample data: The underlying bivariate regression model is y1 = + 1, y2 = + 2. a. Compute the OLS estimate of , and estimate the sampling variance...

Q:

Consider estimation of the following two equation model: y1 = 1 + 1, y2 = 2x + 2. A sample of 50 observations produces the following moment matrix: a. Write the explicit formula for the GLS estimator...

Q:

Please answer Data Set Market Research Data Sample Size, n 30 (2 -200) Sample Now Sampling Cost = 520 Download CSV DATA RateNew RateCurr CurrBrand No Age 44 5.1 7.2 39 5.6 36 9.6 4.8 D 33 8.4 9.9 B...

Q:

APStatistics 4.01 Transforming Data Directions: Complete the assignment. Clearly label each answer. The last page contains a table of common transformations. (27 points) 1. Consider the following set...

Q:

Need Urgent. Check comments from time to time for additional instructions 1. Measurements are collected from 100 subjects from each of two sources. The data yield the following frequency histograms....

Q:

QUANTITATIVE METHODS 19. All else being equal, an investor would most likely prefer portfolios with return distributions that have: a. Positive skewness. b. Negative skewness. c. High excess...

Q:

Questions 1 - 3 are based on the following scenario: The time to make beds at a motel is supposed to fall into an agreed-on range of times. A sample of five maids was selected to evaluate their...

Q:

How can a marketer use knowledge of how family members seek to resolve conflicts?

Q:

The rate of heat transfer to the surroundings from a person at rest is about 400 kJ/h. Suppose that the ventilation system fails in an auditorium containing 100 people. Assume the energy goes into...

Q:

If the opinions of those trusted by recipients of change are positive and the recipients initial attitude toward the change is negative, recipients are likely to respond in which of the following...

Q:

A company reported cost of goods sold of $1,760,000 for the year. During the year, inventory increased from a $92000 beginning balance to a $140,000 ending balance, and accounts payable increased...

Q:

Scofield Enterprises has been operating for one year and the company needs additional working capital to expand its business. The owner doesn't really know whether the business is profitable or not,...

Q:

Using False position method to do 10 itterations of F(x) = - 5x 4 + 2160000 x 2 1.29610 11 Using False position method. Secant method.

Q:

Essex Industries is considering the acquisition of Twinsburg Company in a stock-for-stock exchange. The following financial data is available on both companies. (Assume no synergy is expected with...

Q:

What is the difference between natural selection and artificial selection?

Q:

What are the merits of monopoly?

Q:

Exponential Families of Distributions for each of the following distributions, determine whether it is an exponential family by examining the log-likelihood function. Then, identify the sufficient...

Q:

In the classical regression model with heteroscedasticity, which is more efficient, ordinary least squares or GMM? Obtain the two estimators and their respective asymptotic covariance matrices, then...

Q:

Consider the probit model analyzed in Section 17.8. The model states that for given vector of independent variables, Prob[yi = 1 | xi ] = [x'i], Prob [yi = 0 | xi ] = 1 Prob[yi = 1 | xi]. We have...

Q:

This type of returns include the return of surplus raw materials, returns due to failed quality controls and production scrap: A . Manufacturing returns B . Distribution returns C . Supplier returns...

Q:

Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $ 2 , 6 7 0 , 0 0 0 ( all on credit ) , and its net profit...

Q:

3. Complete the balance sheet using the following information: Debt Ratio: 40% Quick Ratio: 2.8 ACP: 36 GPM: 20% Inventory T/0 6 ROE: 16.00% L-T Debt-to-Equity Ratio: 50% ROA: 10.00% Net Income...