EC355 Study Guide - Midterm Guide: Econometrics, Rack Unit, Dependent And Independent Variables
Document Summary
This examination consists of 14 pages and 5 questions. invigilator. The number in brackets at the start of each question is the number of points the question is worth. Please bring any discrepancy to the attention of an. To obtain full credit, you need to be as clear as possible in all your answers. , where e ui|x = 0, and var ui|x = 2 (a) [10] derive the ols estimators of o, and 1. Solution yi = o + 1xi + ui min. Xi=1 (yi o 1xi)2 = 0 (1) Xi=1 (yi o 1xi)2 = 0 (2) looking at equation (1), we get. N yi yi n o 1. N xi = 0 xi = n o. Xi=1(cid:16)yi o 1xi(cid:17) xi = 0. Xi=1(cid:16)yi y + 1x 1xi(cid:17) xi = 0. Xi=1hyi bary 1 (xi x)i xi = 0. 1 = (yi y) xi (xi x) xi (xi x) xi. Note that and, (yi y) xi =
