Week5-MultiReg2_2017s2.pdf - Week 5 The Multiple Regression Model(2 Principles of Econometrics 4th Edition Chapter 5 The Multiple Regression Model Page

Week5-MultiReg2_2017s2.pdf - Week 5 The Multiple Regression...

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Principles of Econometrics, 4t h Edition Page 1 Chapter 5: The Multiple Regression Model Week 5 The Multiple Regression Model (2)
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Principles of Econometrics, 4t h Edition Page 2 Chapter 5: The Multiple Regression Model ASSUMPTIONS of the Multiple Regression Model MR1. MR2. MR3. (homoskedasticity) MR4. , i j (No Serial Correlation) MR5. The values of each x ik are not random and are not exact linear functions of the other explanatory variables MR6. 1 2 2 , 1, , i i K iK i y x x e i N    1 2 2 ( ) ( ) 0 i i K iK i E y x x E e    2 var( ) var( ) i i y e   cov( , ) cov( , ) 0 i j i j y y e e 2 2 1 2 2 ~ ( ), ~ (0, ) i i K iK i y N x x e N    5.1 Introduction 5.1.2b The Assumptions of the Model
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Principles of Econometrics, 4t h Edition Page 3 Chapter 5: The Multiple Regression Model Table 5.1 Observations on Monthly Sales, Price, and Advertising in Big Andy’s Burger Barn 5.1 Introduction 5.1.2 The Econometric Model
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Principles of Econometrics, 4t h Edition Page 4 Chapter 5: The Multiple Regression Model . Table 5.2 Least Squares Estimates for Sales Equation for Big Andy’s Burger Barn 5.2 Estimating the Parameters of the Multiple Regression Model 5.2.2 Least Squares Estimates Using Hamburger Chain Data ± 2 118.91 7.908 1863 0.448 ( ) (6.35) (1.096) (0.683) SALES PRICE ADVERT R se
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