Weighted least squares. Consider the data in Table 9-4. a. Estimate the OLS regression Yi = B1

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Weighted least squares. Consider the data in Table 9-4. a. Estimate the OLS regression
Yi = B1 + B2Xi + ui
b. Estimate the WLS

(Make sure that you run the WLS through the origin.) Compare the results of the two regressions. Which regression do you prefer? Why?
AVERAGE COMPENSATION IN RELATION TO PRODUCTIVITY
BY EMPLOYMENT SIZE, U.S. MANUFACTURING INDUSTRIES

Weighted least squares. Consider the data in Table 9-4. a.

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Essentials of Econometrics

ISBN: 978-0073375847

4th edition

Authors: Damodar Gujarati, Dawn Porter

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Question Posted: Apr 12, 2016 07:31 AM

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Weighted least squares. Consider the data in Table 9-4. a. Estimate the OLS regression Yi = B1

Question:

Y, IE Average Standard deviation Employment size compensation productivity of compensation Average (average number of employees) 3,396 3,787 4,013 4,104 4,146 4,241 8,584 7.962 8.275 8,389 10-19 20-49 805 930 1,081 1,243 1,308 1,112 100-249 250-499 4,538 4.843 9,795 10,281 11,754 1000-2.499

Step by Step Answer:

a 19937258 02328 X i t 21309 23340 r 2 04376 b t 21131 14273 r 2 06482 Thi...View the full answer

Essentials of Econometrics

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