ECO 3151 Study Guide - Midterm Guide: Simple Linear Regression, Ordinary Least Squares, Null Hypothesis

• School: University of Ottawa
• Department: Economics
• Course: ECO 3151
• Professor: Mohammad Rafiquzzaman

Document Summary

Test # 1 time: 70 minutes october 10, 2014. _______________________________________________________________________: consider a simple linear regression model for which the population regression equation can be written as: Fall 2014 where and are observable variables, and are unknown parameters, and is an unobservable random error term. The ordinary least squares (ols) sample regression equation corresponding to the population regression equation is: where is the ols estimator of the intercept coefficient is the ols estimator of the slope coefficient. , and is the ols residual for the i-th sample observation. Preliminary analysis of the sample data yielded the following results: (all sums are taken over i = 1, 2, , 25). Use the above information to answer all the following questions. 1 iiiuxy 10 iyix0 1 iuniuxyiii,,2,1, 10 0 0 1 1 iu 0 1 iyixiiiuxy 10 25 n54. 250,22 iiyx92. 432,112 ix,19. 237,452 iy599. 528 ix97. 034,1 iy523. 864,1 2 iu(a) compute ols estimates of and (10 marks) (b) explain the slope coefficient you estimated (