CHAPTER Z01 - PHALL-82241 PINDYCK CHAPTER Z01 FIGURE A.1...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: PHALL-82241 PINDYCK CHAPTER Z01 FIGURE A.1 LEAST SQUARES Sales (S) (billions of dollars) 60 Si 50 Si Residual (Si – Si ) A Si = b0 + b1Pi B 40 100 Pi 110 120 Price index ( P) The regression line is chosen to minimize the sum of squared residuals. The residual associated with price Pi is given by line AB. Fig A-1.eps page 1 of 1 ...
View Full Document

This note was uploaded on 09/28/2011 for the course ECON 105 taught by Professor Prof.eco during the Spring '11 term at Indian School of Business.

Ask a homework question - tutors are online