11_TwoVariables0825

11_TwoVariables0825 - 1.1 Two-variable OLS: derivation...

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Unformatted text preview: 1.1 Two-variable OLS: derivation 73-261 Econometrics August 25 Wooldridge Appendix 2.A, Gujarati 3.1 p. 2 CMU / Y. Kryukov Announcements Todays lecture will be posted on Blackboard, without any blanks Homework 1 will be posted today Due September 8 (after Labor day) You can do parts of it after this week Recitation this Friday Install GRETL on your laptop Bring it to class Data for exercise will be on Blackboard 73-261 1.1 Two-variable OLS p. 3 CMU / Y. Kryukov Have the data 1 2 3 4 5 6 7 8 9 10 2 4 6 8 10 Q p 73-261 1.1 Two-variable OLS p. 4 CMU / Y. Kryukov Want to fit a line to the data 1 2 3 4 5 6 7 8 9 10 2 4 6 8 10 Q p 73-261 1.1 Two-variable OLS p. 5 CMU / Y. Kryukov 73-261 1.1 Two-variable OLS We have the data: N is the number of observations i = 1,, N indexes observations X i , Y i are the observations themselves i X i Y i 1 3.2237 5.4300 2 7.4965 0.7601 3 3.1841 6.3761 4 2.4765 6.1450 p. 6 CMU / Y. Kryukov Sample moments These will simplify solving the OLS Sample average estimates of E( X ) , E( Y ) ): Sample variance estimate of V( X ) : Sample covariance estimate of cov ( X , Y ) etc. , 1 , 1 1 1 = = = = N i i N i i Y N Y X N X ( ) 2 1 2 1 1 = = N i i X X X N ( ) ( ) =...
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This note was uploaded on 01/21/2011 for the course ECON 73-261 taught by Professor Kyrkv during the Fall '09 term at Carnegie Mellon.

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11_TwoVariables0825 - 1.1 Two-variable OLS: derivation...

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