Suppose that the classical regression model applies but that the true value of the constant is zero.
Question:
Suppose that the classical regression model applies but that the true value of the constant is zero. Compare the variance of the least squares slope estimator computed without a constant term with that of the estimator computed with an unnecessary constant term.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (18 reviews)
The OLS estimator fit without a constant term is b xyx...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Econometric questions
-
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...
-
For random sampling from the classical regression model in (17-3), reparameterize the likelihood function in terms of = 1/ and = (1/). Find the maximum likelihood estimators of and and obtain the...
-
For random sampling from the classical regression model in (14-3), reparameterize the likelihood function in terms of = 1/ and = (1/). Find the maximum likelihood estimators of and and obtain the...
-
A 2-in dia. steel bar is subjected to the loading indicated. Locate and estimate the maximum shear stress in the weld throat. F T____ 2 ...... kips 15 kip ·in 6 in in 2-in dia.
-
E-Books.com currently has a 10-year $1 million bond issue outstanding (5 years remaining to maturity) with an 11% coupon interest rate and a $1,000 par value. The call premium on these bonds is 5%....
-
The article "Simulation of the Hot Carbonate Process for Removal of CO2 and H2S from Medium Btu Gas" (K. Park and T. Edgar, Energy Progress, 1984:174-180) presents an equation used to estimate the...
-
How can HRIS T&D applications help firms foster organizational learning?
-
The U.S. Energy Department states that 60% of all U.S. households have ceiling fans. In addition, 29% of all U.S. households have an outdoor grill. Suppose 13% of all U.S. households have both a...
-
Jack, age 3 0 and married with no dependents, is a self - employed individual. For 2 0 2 3 , his self - employed business sustained a net loss from operations of $ 1 0 , 0 0 0 from operations . The...
-
On 2 September, a 90-day bill issued with a maturity of 1 December had a quoted price of $92. One 2 October (i.e. 30 days passed), the price was $92.50. Assume the bill face value is $1mil. Suppose...
-
Consider the simple regression yt = xt + 1 where E p[ | x] = 0 and E [2 | x ] = 2 (a) What is the minimum mean squared error linear estimator of ? Choose e to minimize Var [] + [E( ?? )]2. The answer...
-
Suppose that the regression model is yi = + xi + i, where the disturbances i have f (i) = (1/) exp (i), i 0. This model is rather peculiar in that all the disturbances are assumed to be positive....
-
Fill in the blanks or answer true or false. Every autonomous DE dy/dx = f (y) is separable.________
-
______________ refers to the location, time, and occasion where communication occurs.
-
___________ are practices, behaviors, celebrations, and traditions common to people, organizations, and institutions.
-
What are the two main purposes of statistical inference mentioned by Bard and Frederick? What is the difference between these two purposes, and how are the purposes related?
-
_____________ are the standards used to make a decision.
-
Perceiving your communication as effective while those around you perceive it as ineffective is known as ______________.
-
Professional Research Employees at your company disagree about the accounting for sales returns. The sales manager believes that granting more generous return provisions and allowing customers to...
-
The time to assemble the first unit on a production line is 10 hours. The learning rate is 0.94. Approximately how long will it take for the seventh unit to be assembled? The number of hours needed...
-
What are some examples of positive protections for women workers in this period? Some not so positive protections?
-
A common strategy for handling a case in which an observation is missing data for one or more variables is to fill those missing variables with 0s and add a variable to the model that takes the value...
-
Let Y denote total expenditure on consumer durables, nondurables, and services and E d , E n , and E s are the expenditures on the three categories. As defined, Y = E d + E n + E s . Now, consider...
-
Prove that the adjusted R 2 in (3-30) rises (falls) when variable x k is deleted from the regression if the square of the t ratio on x k in the multiple regression is less (greater) than 1.
-
Identify one type of business and describe that business and it's lending needs. Then describe what their potential lending needs may? Manufacturing Retail Wholesale Service Construction
-
Many investors believe the slope of yield curve is a leading economic indicator. Do you agree? Why? https://home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics?
-
Analyze the process for monitoring claims data for detecting potential fraud and abuse and describe how it is a crucial financial management process?
Study smarter with the SolutionInn App