Consider the regression model y i = 1 + 2 x i + u i

Question:

Consider the regression model

y_i = β₁ + β₂x_i + u_i

where yi = (Y_i – Y̅ ) and x_i = (X_i – X̅ ). In this case, the regression line must pass through the origin. True or false? Show your calculations.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

See More Books

Question Posted: Apr 30, 2018 03:40 AM

See More Questions

Consider the Sherwin-Williams Company example (see Table). Suppose one is interested in developing a simple regression model with paint sales (Y) as the dependent variable and selling price (P) as...
Consider the following time series data representing quarterly sales of dishwashers at Big Boys Appliances over the past two years: The scatter plot of the data above shows seasonality with trend....
Are the following models linear regression models? Why or why not? a. Y i = e 1 + 2Xi + ui b. Y i = 1 / 1 + e 1 + 2Xi + ui c. ln Y i = 1 + 2 (1/X i ) + u i d. Y i = 1 + (0.75- 1 )e -2(Xi-2) +ui e....
In general, algorithms are classified into paradigms like: greedy, dynamic, optimization, brute-force, and divide & conquer. Each of the following phrases describes one of these paradigm 1) A...
Fred travels from Denver to Miami primarily on business. He spends five days conducting business and two days sightseeing. His expenses are $425 (airfare), $125 per day (meals), and $340 per night...
What follows is part of the testimony from Troy Normand in the WorldCom case. He was a manager in the corporate reporting department and is one of five individuals who pleaded guilty. He testified in...
Air flows from a pipe into the region between two parallel circular disks as shown in Fig. P4.51. The fluid velocity in the gap between the disks is closely approximated by $V=V_{0} R / r$, where...
Provide examples of resources that are temporarily restricted as to: (a) Purpose; (b) Time; and (c) The occurrence of a specic event. Provide an example of permanently restricted resources.
X - rays having an energy of 3 0 1 keV undergo Compton scattering from a target. The scattered rays are detected at 3 1 o relative to the incident rays. Find the Compton shift at this angle. Round...
The hydroelectric plant has a catchment area of 120 square km. The available runoff is 50% with an annual rainfall of 100 cm. Ahead of 250 m is available on an average. The efficiency of the power...
Consider the loglinear model: ln Y i = 1 + 2 ln X i + u i Plot Y on the vertical axis and X on the horizontal axis. Draw the curves showing the relationship between Y and X when 2 = 1, and when 2...
From the data given in the following table, find out the growth rate of expenditure on nondurable goods and compare your results with those obtained from Exercise 6.17. PCEXP Year or quarter...
What is the difference between nonverbal and oral and written communication?
The cable lifting an elevator is wrapped around a $1.0-\mathrm{m}-$ diameter cylinder that is turned by the elevator's motor. The elevator is moving upward at a speed of \(1.6 \mathrm{~m} /...
Suppose the free-fall acceleration at some location on earth was exactly $9.8000 \mathrm{~m} / \mathrm{s}^{2}$. What would it be at the top of a $1000-\mathrm{m}-$ tall tower at this location?...
A combination lock has a 1.0 -cm-diameter knob that is part of the dial you turn to unlock the lock. To turn that knob, you grip it between your thumb and forefinger with a force of \(0.60...
HD $10180 \mathrm{~g}$ orbits with a period of 600 days at a distance of 1.4 au from its star. What is the ratio of the star's mass to our sun's mass? In recent years, scientists have discovered...
a. Can the normal force on an object be directed horizontally? If not, why not? If so, provide an example. b. Can the normal force on an object be directed downward? If not, why not? If so, provide...
Radar is used to scan for airplanes near an airport. If an airplane is 30 km from the airport, what is the round-trip travel time for the electromagnetic wave used by the radar system?
How does the organizational structure of an MNC influence its strategy implementation?
Discuss some of the likely problems facing the marketing manager in a small firm who plans to search the Internet for information on competitors marketing plans.
Explain the key characteristics of the scientific method and show why these are important to managers concerned with research.
How is the situation analysis different from the data collection step? Can both these steps be done at the same time to obtain answers sooner? Is this wise?
1. How many degrees Celsius does the temperature decrease when there is a 45.8F decrease in temperature? 2. For each 1.00F change in temperature what is the corresponding change in degrees Celsius?...
A proton (mass of 1.67 x 10-27 kg) is moving at 1.25 x 106 m/s directly toward a stationary helium nucleus (mass 6.64 x 10-27 kg). After a head-on elastic collision, what is the velocity of the...
The December 31, Year 4, balance sheet for Vernon Corporation is presented here. These are the only accounts on Vernon's balan sheet. Amounts indicated by question marks (?) can be calculated using...

Consider the regression model y i = 1 + 2 x i + u i

Question:

Step by Step Answer:

The usual OLS formula to estimate the intercep...View the full answer

Basic Econometrics

Students also viewed these Business questions