Identify the parameters of this model, Econometrics

Assignment Help:

Consider a Simple Linear Regression Model (SLRM) of the form y= a1+a2X+e where e ~  N(0,σ2)(Use the assumptions outlined in our class and available for review in the lecture notes posted on RamCT to answer the following questions)

(a) Identify the dependent variable in this model. Is it random? If so, how is it distributed (what is the mean and variance)? Is it observable or not?

(b) Identify the parameters of this model. Are they random? If so, how are they distributed (what is the mean and variance)? Is it observable or not?

(c) Identify the error term in this model. Is it random? If so, how is it distributed (what is the mean and variance)? Is it observable or not?

 

 


Related Discussions:- Identify the parameters of this model

Calculate the elasticity of the premium, You are a property insurer and one...

You are a property insurer and one of your potential clients, whose current wealth is $450,000, wants to insure her $250,000 house.  The chances of the house burning down in any gi

Regression, Consider a linear model to explain pricing of houses: Price = ß...

Consider a linear model to explain pricing of houses: Price = ß0 + ß1lotsize + ß2sqrft + ß3bdrms + u (1) E(u| lotsize, sqrft, bdrms)=0 Var (u| lotsize, sqrft, bdrms)=s2 lotsize4

HR, the following are the weekly amounts of welfare payments made by the fe...

the following are the weekly amounts of welfare payments made by the federal government to a sample of six families: $139, $136,$130,$136,$147and$136.what is the range

Effects in financial data, Problem: a) In what circumstances would you ...

Problem: a) In what circumstances would you apply switching models? b) Using dummy variables for seasonality show how you would test for January effects in financial data?

Estimate a var involving equations, Question 1: a)  Explain what is a V...

Question 1: a)  Explain what is a VAR giving an example both in the form of an equation and matrix. Discuss its benefits and limitations. b)  How can we estimate a VAR invol

Long-run equilibrium solution, Suppose a small open economy is characterise...

Suppose a small open economy is characterised by the following equations/information:             Y =6K 0 L 1-α             K 0 = 30,000             L 0 = 10,000

Marginal revenue function, A firm has the certain total revenue (TR) functi...

A firm has the certain total revenue (TR) function:      TR=(4Q+2) e 4Q where Q  is Quantity      Find the firm's marginal revenue function.

The Role of Labor, Which of the following is an example of derived demand?

Which of the following is an example of derived demand?

Correlation and rank correlation, Explain the difference among the usual (p...

Explain the difference among the usual (product moment) correlation and rank correlation. In what situations is it more appropriate to use rank correlation?

Write Your Message!

Captcha
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