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pol 51 lecture 11

pol 51 lecture 11 - y-intercept parameter< a slope...

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Pol 51 Lecture 11 U i is stochastic, “random” unexplained. Unexplained because people are complicated, we can’t always explain human behavior. OUR THEORIES ARE ALWAYS WRONG. All models are wrong but some are useful. Something about the population so our model: Y i = a + bX i <- systematic But we must consider u i . rewritten as a + bX i + u i Whenever there is a carrot on top of the variables then it is an estimate.
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Unformatted text preview: y-intercept parameter <- a slope parameter <- b so Yi and Xi are values that are measured rather than estimated. We use these to estimate a, b, and u. why do we care about the predicted if we have the observed? The Ui tells us a lot of stuff. It tells us how well the line fits the data. You want the sum of square residuals to be close to 0. What does this tell us about politics?...
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