How would you go about estimating the unknowns

Assignment Help Microeconomics
Reference no: EM13881863

Regression through the origin. Consider the following regression through the origin:
Yi = βˆ2 X2i + βˆ3 X3i + uˆ i

a. How would you go about estimating the unknowns?

b. Will J. uˆ i be zero for this model? Why or why not?

c. Will J. uˆ i X2i = J. uˆ i X3i = 0 for this model?

d. When would you use such a model?

e. Can you generalize your results to the k-variable model?

Reference no: EM13881863

Questions Cloud

What specific strategies might the investment manager pursue : Suppose that a bank's ALCO reports that the bank is too liability sensitive; that is, earnings will fall more than desired should rates rise. You have been asked to reduce the bank's earnings sensitivity. What specific strategies might the investment..
What is present worth of the dividend savings to epwu rate : If the bond dividend rate would have been 4% per year, payable quarterly, with a bond maturity date 18 years after issuance, what is the present worth of the dividend savings to EPWU rate payers?
Safest conditions are achieved by lowest temperature : (a) The safest conditions are achieved by the lowest temperature and pressure in the flash vessel. (b) Vapor flow to downstream equipment can cause a hazardous situation.
Spill response and cleanup problems associated with water : Explain the spill response and cleanup problems associated with water-soluble liquids
How would you go about estimating the unknowns : Regression through the origin. Consider the following regression through the origin: Yi = βˆ2 X2i + βˆ3 X3i + uˆ i      - How would you go about estimating the unknowns?
What is the present worth now of one bond : If the bond maturity date is 20 years from the date they were issued and the interest rate in the marketplace is now 12% per year, compounded semiannually, what is the present worth (now) of one bond?
Degree of reaction-definition of flow coefficient : Degree of Reaction - Definition of flow coefficient, and the velocity diagram.
Describe the basic strategy in riding the yield curve : Describe the basic strategy in riding the yield curve. Can you ride the yield curve if the yield curve is downward sloping with short term rates above long term rates?
Differences between threshold limit value and permissible : What are the differences between threshold limit value and permissible exposure limit?

Reviews

Write a Review

Microeconomics Questions & Answers

  What is globalization and what are its dimensions

What is globalization? What are its dimensions? Briefly explain how these two groups of forces drive globalization: the worldwide reduction of tariffs, market liberalization and economic integration on the one hand and advances in technology on the o..

  Provide an example of a current event or issue

Write a 1,000 word paper about the ways in which different levels of government interrelate with each other. Include the following points in your paper: Provide an example of a current event or issue where multiple governments interact on the sol..

  The current yield on the bond

Assume that a $1,000 bond issued in 2012 pays $100 in interest each year.What is the current yield on the bond?

  Find profit maximizing order quantity

A television station is planning the sale of promotional dvds. It can have dvds manufactured by one of two suppliers. Supplier A will charge the station a set up fees of $1200 plus $2 for each dvds;

  Write the characteristics and mechanisms of expansionary

what are the characteristics and mechanisms of expansionary and contractionary monetary policy? is monetary policy

  Write the conditions of efficient resolution to this

my neighborsare college students who sometimes have late-night parties. assume that the nuisance cost of these parties

  Externalities-analysis and policy design suppose that in a

externalities-analysis and policy design suppose that in a competitive market demand is given by the equation p 600 -

  Can you explain her decision

Vera has decided to upgrade the operating system on her new Pc. She hears that the new Linux operating system is technologically superior to Windows and substantially lower in price. However, when she asks her friends, it turns out they all use PCs w..

  Are you interested in working in management explain why or

are you interested in working in management? why or why not? if you had to decide which major step in the managerial

  Oligopolynow assume that the meat-now assume that the

oligopolynow assume that the meat-now assume that the meat-processing industry is a duopoly with two firms marions

  Explain the four factors that lead to economic growth

Explain the four factors that lead to economic growth. Which of the factors of growth does Hanson rely on to develop his arguments about the benefits of immigration

  Explain the market equilibrium quantity and price

There are 10 identical firms, each firm's marginal cost is MC(q)= 5 + 5q. The market is competitive. derive the market demand function.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd