81 720
Assignments Done
99%
Successfully Done
In November 2019

# Answer to Question #52693 in Other Economics for candy

Question #52693
Yi = B1 + B2Xi + ui a) What does ui represent? b) What is the expected value of the ui's and what is their probability distribution? c) What does an &quot;unbiased&quot; estimator mean? d) Why are the coefficients of a Sample Regression Function considered random variables? e) Write the formula for the Variance of a regression coefficient and comment on how the various components of the equation influences the magnitude of the variance. can you give me the example?
1
Expert's answer
2015-05-20T09:41:51-0400
Yi = B1 + B2Xi + ui
a) ui represents random variable.
b) The expected value of a random variable is intuitively the long-run average value of repetitions of the experiment it represents.
c) unbiased estimation of a standard deviation is the calculation from a statistical sample of an estimated value of the standard deviation (a measure of statistical dispersion) of a population of values, in such a way that the expected value of the calculation equals the true value.
d) The coefficients of a Sample Regression Function are considered to be random variables, because their value is subject to variations due to chance.
e) Variance measures how far a set of numbers is spread out. Variance is always non-negative: a small variance indicates that the data points tend to be very close to the mean (expected value) and hence to each other, while a high variance indicates that the data points are very spread out around the mean and from each other.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

#### Comments

No comments. Be first!

### Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS