Explore BrainMass
Share

Explore BrainMass

    slope and intercept parameters

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    An estimate of the model:

    Y= a + bX + u yielded the following values displayed in the table below

    y x y estimate u estimate
    0 1 -1 1
    0 1 -2 2
    1 1 0 1
    2 3 3 -1
    3 2 4 -1

    y= Y-Ymean, x= X - Xmean;
    a) compute an estimate of b
    b) compute an estimate of var(u)

    © BrainMass Inc. brainmass.com October 9, 2019, 8:25 pm ad1c9bdddf
    https://brainmass.com/economics/econometric-models/slope-intercept-parameters-150569

    Attachments

    Solution Preview

    Please see attachment. Note there are certainly other ways to ...

    Solution Summary

    Slope and intercept parameters are applied. The values displaced in the table are yielded.

    $2.19