AutoSave OFF Assignment 2- Saved to my Mac Home Insert Draw Design Layout References Mailings Review View Share Q Comments Times New... 11 A A Aav A AL AaBbDcDdEe AaBbCcDdEe AaBb CcDd Ee AaBbCcDc AabbCcDdEt AaBbc AaBb CcDd Ee " ili Paste B I Uab X, X ADA Normal No Spacing Heading 1 Heading 2 Title Subtitle Subtle Emph... Styles Pane Sensitivity Check for Updates * Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. Question 1 The residual sum of squares (RSS) measures the variance of residual terms in linear regressions. Now consider the two types of models we covered in class, e.g. the unrestricted model and restricted model: for instance: Y = B.+BX+BX+BX+ u. 2t 30 Y = B+BX2+u the first one is the unrestricted model and the second one is the restricted model under the restriction of B3 = B4 = 0. Without any calculation, which do you expect to be bigger: the RSS of unrestricted model or the RSS of restricted model? Why? Question 2 Bitcoin is the longest running and most well known cryptocurrency, first released as open source in 2009 by the anonymous Satoshi Nakamoto. As with any currency/commodity on the market, bitcoin trading and financial instruments soon followed public adoption of bitcoin and continue to grow. Included here is historical bitcoin market data (coin_Bitcoin.csv'). This dataset contains the opening price, closing price, daily high, daily low, daily volume and market cap six variables per given day. We wish to use the rest of five (or less than five) variables to predict closing price per day. Please construct a Multiple Regression model to study it. Hint: you can build several regressions and select the best one. You need to explain why the one you choose is the best and what is the limitation/problems of the model Page 1 of 1 243 words LE English (United States) 1T O Focus E E + 149% AutoSave OFF Assignment 2- Saved to my Mac Home Insert Draw Design Layout References Mailings Review View Share Q Comments Times New... 11 A A Aav A AL AaBbDcDdEe AaBbCcDdEe AaBb CcDd Ee AaBbCcDc AabbCcDdEt AaBbc AaBb CcDd Ee " ili Paste B I Uab X, X ADA Normal No Spacing Heading 1 Heading 2 Title Subtitle Subtle Emph... Styles Pane Sensitivity Check for Updates * Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. Question 1 The residual sum of squares (RSS) measures the variance of residual terms in linear regressions. Now consider the two types of models we covered in class, e.g. the unrestricted model and restricted model: for instance: Y = B.+BX+BX+BX+ u. 2t 30 Y = B+BX2+u the first one is the unrestricted model and the second one is the restricted model under the restriction of B3 = B4 = 0. Without any calculation, which do you expect to be bigger: the RSS of unrestricted model or the RSS of restricted model? Why? Question 2 Bitcoin is the longest running and most well known cryptocurrency, first released as open source in 2009 by the anonymous Satoshi Nakamoto. As with any currency/commodity on the market, bitcoin trading and financial instruments soon followed public adoption of bitcoin and continue to grow. Included here is historical bitcoin market data (coin_Bitcoin.csv'). This dataset contains the opening price, closing price, daily high, daily low, daily volume and market cap six variables per given day. We wish to use the rest of five (or less than five) variables to predict closing price per day. Please construct a Multiple Regression model to study it. Hint: you can build several regressions and select the best one. You need to explain why the one you choose is the best and what is the limitation/problems of the model Page 1 of 1 243 words LE English (United States) 1T O Focus E E + 149%