Formula that you might use: For a simple linear regression model yi= α + βxi+ui, i=1,2,...,N....

Formula that you might use:

For a simple linear regression model

yi= α + βxi+ui, i=1,2,...,N.

Homework Assignment 1

1. Suppose researchers want to know the effect of elementary school class size on students’ math scores(total score is 100), intuitively they think there exists a negative linear relationship between class size and students’ math scores. The researchers want to know the marginal effect of class size on student’s math scores.

1) Based on the background information, design an linear regression model for this research question, and briefly explain your dependent variable, independent variable and the meaning of the parameters.
2) Briefly explain the assumptions of Classical linear regression model (CLRM)

3) Suppose the assumptions of the CLRM are satisfied, what properties of your estimators should be expected to have?

Solutions

Expert Solution

orchestra answered 1 year ago

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