Assignment 5

# Assignment 5 - ECO 544 Assignment 5 1(1 Independent...

This preview shows pages 1–2. Sign up to view the full content.

ECO 544 Assignment 5 1. (1) Independent variable: dtmathssk ( x – axis ) Dependent variable: dtmathss1 ( y – axis ) (2) and are the coefficients in true regression line. True regression line is not directly observable, so that and do not appear in the graph. If we denote and as OLS estimates of and , is the intercept in the estimated regression line in the graph, and is the slope of the estimated regression line. and are unbiased estimators of and , respectively. This does not mean that or . The unbiased estimator means that the expected value of is equal to , which is , and the expected value of is equal to , . That is, we can estimate many s and ’s because of sampling fluctuations, and the means of ’s and ’s that we estimate are equal to and , respectively. Therefore, we cannot say that or . A method of point estimation with some stronger theoretical properties than the method of OLS is the method of maximum likelihood (ML). The ML and OLS estimators of the regression coefficients are identical. One of the difference between two methods is that ML estimator of

This preview has intentionally blurred sections. Sign up to view the full version.

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

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern