2 exercise 39 yi 1 2 x 2 i k x ki ui yi

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Unformatted text preview: ation. 2 EXERCISE 3.9 Yi = β 1 + β 2 X 2 i + ... + β k X ki + ui ˆ Yi = b1 + b2 X 2 i + ... + bk X ki ˆ ei = Yi − Yi = Yi − b1 − b2 X 2 i − ... − bk X ki The residual in observation i is the difference between the actual value of Y and the fitted value. 3 EXERCISE 3.9 Yi = β 1 + β 2 X 2 i + ... + β k X ki + ui ˆ Yi = b1 + b2 X 2 i + ... + bk X ki ˆ ei = Yi − Yi = Yi − b1 − b2 X 2 i − ... − bk X ki ∑ e = ∑Y i i − nb1 − b2 ∑ X 2 i − ... − bk ∑ X ki We sum the resi...
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