100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Econometrics - Regression analysis || with Complete Solutions. CA$16.37   Add to cart
Quickly navigate to
Preview
  2.  
  3. Econometrics - Regression Analysis
  4.  
  5. Econometrics - Regression analysis

Exam (elaborations)

Econometrics - Regression analysis || with Complete Solutions.
 5 views  0 purchase
  • Course
  • Econometrics - Regression analysis
  • Institution
  • Econometrics - Regression Analysis

Regression analysis correct answers measures the impact of a set of variables on another variable. Largely concerned with ESTIMATING/predicting the population mean or average value of the dependent variable based on the known values of the explanatory variable There are two Variables X and Y,...

[Show more]

Preview 2 out of 9  pages

Document information

  • September 10, 2024
  • 9
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • regression analysis

Written for

  • Econometrics - Regression analysis
  • Econometrics - Regression analysis

Seller

avatar-seller
FullyFocus

Reviews received

Content preview

Econometrics - Regression analysis || with Complete
Solutions.
Regression analysis correct answers measures the impact of a set of variables on another
variable.

Largely concerned with ESTIMATING/predicting the population mean or average value of the
dependent variable based on the known values of the explanatory variable

There are two Variables X and Y, representing the same population. How does changing X effect
Y
e.g E(Y | Xi) = f (Xi)

Regression analysis (simple) correct answers concerned with the study of the relation between
the dependent and explanatory variable(s).

the estimated mean value of x based on the value of y

denoting the dependent variable correct answers Y

the explained/response/ endogenous variable

denoting the explanatory variable correct answers X

the independent/regressive/ exogenous variable

direction of travel correct answers changes in X having an impact on Y (important with
regression)

The Population regression function (PRF) / Conditional expectation function (CEF) correct
answers E(Y | Xi) = f (Xi)
The expected or average value of one random variable, called the dependent or explained
variable, as a function the values of one or more other variables, called the independent or
explanatory variables.

E(Y given X), conditional expectation function (CEF) correct answers this is the point on the
regression line

the average value of the dependent variable Y given the value of exogenous variable X

Unconditional expected variable correct answers E(Y)= f(Xi)

Simple linear regression model correct answers an equation that describes the straight-line
relationship between a dependent variable and an independent variable

, y = B0 + B1Xi + u
where B0 is the intercept, u is the error and B1x is the regression line

population regression line correct answers the mean value of the dependent variable
corresponding to each value of the X variable. The line passing through the conditional means of
Y.

Joining the conditional mean values of Y for each X value.

E(Y | Xi) = f (Xi) = B1 + B2Xi
where B1 is the intercept coefficient, and B2 is the slope coefficient. Both unknown but fixed
parameters.

stochastic specification of the population regression function correct answers Yi = B1 + B2Xi +
ui

where B1 + B2Xi is the systematic/modeled/deterministic component and u is the
stochastic/random error term the non systematic/random component

u is a random variable

correct answers there is a distribution of points around every exogenous variables conditional
mean, this distribution is u.

The difference between actual data point and the conditional mean is u.

correct answers u is a random variable of which the regession line is the mean for each variable,
as it doens't depend on X. This is why stats has to do so many corrections and controls.

Main points about random error correct answers -may represent the influence of those variables
not in the model
-Even if all relevant variables are included in the equation there is still some degree of
randomness in Y that we can not explain with all the Xs, ui captures the randomness
-Ui may represent errors of measurement
-Occams Razor: we prefer to have simple models of stats rather than more complex ones. We try
to ignore the less significant variables which may affect the dependent variable.

Sample Regression Function (SRF) correct answers The estimate of the PRF, finding regression
lines based on a random sample of a population. You can't get beta 1 and 2 based on a sample,
you just get an estimate.

The equation relating the predicted value of the dependent variable to the independent variables,
( typically where the parameter estimates have been obtained by OLS).

the stochastic term
Y ̂ i=β ̂ 1+β ̂ 2 Xi = estimator of E(Y | X_i )

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$16.37. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

78252 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$16.37
  • (0)
  Add to cart