11_TwoVariables0830_handout

8 cmu y kryukov covariance of 0 and 1 conditional

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Unformatted text preview: E β0 | X = 0 σ 2 ∑i =1 X i N 2 N ∑i =1 (X i − X ) N 2 ˆ Proofs use same approach as β1 73 2 Au- 3 61 g1 1.1 Two vriable OLS -a p. 8 © CMU / Y. Kryukov ˆ ˆ Covariance of β 0 and β1 ˆ ˆ Conditional on X, β 0 and β1 are . . . . . . . . . . . Both are weighted sums of same ui’s Yet more derivations give us: [ ˆˆ cov β 0 , β1 | X [( )( )] ˆ ˆ = E β 0 − β 0 β1 − β1 | X N 2 σ ∑i =1 X i =− N 2 N ∑i =1 (X i − X ) Example demonstrates 73 2 Au- 3 61 g1 1.1 Two vriable OLS...
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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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