Question
In: Economics
Draw a scatterplot with a linear regression line for which the condition E(ui|Xi)=0 does not hold...
Draw a scatterplot with a linear regression line for which the condition E(ui|Xi)=0 does not hold for all Xi, but E(ui)=0. Be sure to explain how your scatterplot satisfies these criteria.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Suppose that Yi=?0+?1Xi+ui and that E[ui|Xi] = 0 and therefore OLS is an unbiased estimator. a)...
Suppose that
Yi=?0+?1Xi+ui and that E[ui|Xi] = 0 and therefore OLS is an
unbiased estimator.
a) Show that Zi=Xi is a valid instrument for Xi , i.e. it is
both relevant and exogenous.
b) Show that the 2SLS estimator of ?1 using Xi as an instrument
for Xi is exactly equal to the OLS estimator of ?1
c) Let Zi=X2i and assume Xi is normally distributed N(?,?²). Is
Zi exogenous? Is Zi relevant? Explain how the answer to these
questions...
Consider the simple linear regression: Yi = β0 + β1Xi + ui whereYi and Xi...
Consider the simple linear regression: Yi = β0 + β1Xi + ui where
Yi and Xi are random variables, β0 and β1 are population intercept
and slope parameters, respectively, ui is the error term. Suppose
the estimated regression equation is given by: Yˆ i = βˆ 0 + βˆ 1Xi
where βˆ 0 and βˆ 1 are OLS estimates for β0 and β1. Define
residuals ˆui as: uˆi = Yi − Yˆ i Show that: (a) (2 pts.) Pn i=1...
Explain the difference between a regression line and a scatterplot.
Explain the difference between a regression line and a
scatterplot.
a. Construct a scatterplot of the data and tell why a linear regression model is appropriate....
a. Construct a scatterplot of the data and tell why a linear
regression model is appropriate. (Include this graph in your
report.) b. Run the linear regression procedure on
StatCrunch and include the output in your report. c. Give the
regression equation using the correct notation. d. Give the
Coefficient of Determination AND interpret it. e. Check
the assumptions of the model by constructing each of the following
plots and commenting on what they suggest in terms of the
assumptions....
Use the given data to find the equation of the regression line. Examine the scatterplot and...
Use the given data to find the equation of the
regression line. Examine the scatterplot and identify a
characteristic of the data that is ignored by the regression
line.
x
44
1212
99
77
33
1111
1010
88
55
1313
66
y
3.643.64
8.448.44
9.309.30
8.108.10
1.441.44
9.089.08
9.369.36
8.888.88
5.485.48
7.447.44
6.966.96
Use the given data to find the equation of the regression line. Examine the scatterplot and...
Use the given data to find the equation of the regression line.
Examine the scatterplot and identify a characteristic of the data
that is ignored by the regression line.
x y
9 7.7
7 6.58
13 13.22
10 6.93
12 7.56
14 9.01
7 6.28
4 5.18
11 8.46
8 6.68
5 5.48
Use the given data to find the equation of the regression line. Examine the scatterplot and...
Use the given data to find the equation of the regression line.
Examine the scatterplot and identify a characteristic of the data
that is ignored by the regression line.
x
66 5 10 9 7 11 8 12 14 15 13
y
4.19 2.42 8.22 7.67 5.66 8.47 6.81 8.41 7.39 6.42 8.06
y with caret =__+__x
(Round to two decimal places as needed.)
Create a scatterplot of the data. Choose the correct graph
below.
Identify a characteristic of the...
Use the given data to find the equation of the regression line. Examine the scatterplot and...
Use the given data to find the equation of the regression line.
Examine the scatterplot and identify a characteristic of the data
that is ignored by the regression line.
x y
12 18.26
7 13.01
8 14.67
13 18.39
4 6.22
6 11.06
5 8.79
14 18.22
11 17.81
9 16.02
10 17.07
y=
Create a scatterplot of the data. Choose the correct graph
Identify a characteristic of the data that is ignored by the
regression line.
Use the given data to find the equation of the regression line. Examine the scatterplot and...
Use the given data to find the equation of the regression line.
Examine the scatterplot and identify a characteristic of the data
that is ignored by the regression line. x 8 10 12 11 6 4 3 13 7 5 9
y 14.75 16.69 17.31 17.17 11.49 6.91 4.13 17.13 13.28 9.37 15.88
Modifying Above y with caret equals nothing plus nothing x
Use the given data to find the equation of the regression line. Examine the scatterplot and...
Use the given data to find the equation of the regression line.
Examine the scatterplot and identify a characteristic of the data
that is ignored by the regression line.
x
55
1212
10
11
44
14
13
88
77
99
66
y
5.11
9.77
10.08
10.09
3.13
8.13
9.11
9.08
8.09
9.75
6.77
ModifyingAbove y with caretyequals=nothingplus+nothingx
create a scatterplot of data
characteristic of scatterplot
(Round to two decimal places as needed.)
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