How would you go about estimating the unknowns

Assignment Help Microeconomics
Reference no: EM13881863

Regression through the origin. Consider the following regression through the origin:
Yi = βˆ2 X2i + βˆ3 X3i + uˆ i

a. How would you go about estimating the unknowns?

b. Will J. uˆ i be zero for this model? Why or why not?

c. Will J. uˆ i X2i = J. uˆ i X3i = 0 for this model?

d. When would you use such a model?

e. Can you generalize your results to the k-variable model?

Reference no: EM13881863

Questions Cloud

What specific strategies might the investment manager pursue : Suppose that a bank's ALCO reports that the bank is too liability sensitive; that is, earnings will fall more than desired should rates rise. You have been asked to reduce the bank's earnings sensitivity. What specific strategies might the investment..
What is present worth of the dividend savings to epwu rate : If the bond dividend rate would have been 4% per year, payable quarterly, with a bond maturity date 18 years after issuance, what is the present worth of the dividend savings to EPWU rate payers?
Safest conditions are achieved by lowest temperature : (a) The safest conditions are achieved by the lowest temperature and pressure in the flash vessel. (b) Vapor flow to downstream equipment can cause a hazardous situation.
Spill response and cleanup problems associated with water : Explain the spill response and cleanup problems associated with water-soluble liquids
How would you go about estimating the unknowns : Regression through the origin. Consider the following regression through the origin: Yi = βˆ2 X2i + βˆ3 X3i + uˆ i      - How would you go about estimating the unknowns?
What is the present worth now of one bond : If the bond maturity date is 20 years from the date they were issued and the interest rate in the marketplace is now 12% per year, compounded semiannually, what is the present worth (now) of one bond?
Degree of reaction-definition of flow coefficient : Degree of Reaction - Definition of flow coefficient, and the velocity diagram.
Describe the basic strategy in riding the yield curve : Describe the basic strategy in riding the yield curve. Can you ride the yield curve if the yield curve is downward sloping with short term rates above long term rates?
Differences between threshold limit value and permissible : What are the differences between threshold limit value and permissible exposure limit?

Reviews

Write a Review

Microeconomics Questions & Answers

  Market for online legal services as monopolistical competion

How can providers of legal services differentiate their products? How does Nolo.com attempt to do this?3. Search the web for at least three additional online legal firms and compare the services these firms offer (a quick bullet list will suffice..

  Describe the competition in physician services

Use economic concepts to describe the competition in physician services specific to demand and supply.

  Cost of production is fixed in the short run

For many corporations, a major portion of the cost of production is fixed in the short run. Should these very large fixed costs be ignored when the executives are making output and pricing decisions?

  Daw budget constraint showing trade-off between lifetime

consider a couples decision about how many children to have. assume that over a lifetime a couple has 200000 hours of

  Carbon footprint analysis

The Carbon Footprint Analysis measures the impact of individual lifestyles on the environment. The calculation is generally limited to the amount of energy a person uses in daily life, and to the quantity of material goods consumed.

  Hamburgers is measured along the horizontal axis

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

  Explain why inequality is considered to be a social bad

Explain why inequality is considered to be a social “bad” by many people. In what way could inequality be a social “good”?

  What will be the percentage change in the quantity demanded

Suppose you know that the price elasticity of demand for good X has a value of 2. Suppose that the price in the market is initially $10 and the quantity demanded is 100 units. If price in this market decreases by 10%

  Draw a cash flow diagram for each option

You will not be making any payments on the interest (from the loan) generated from the principle while you are attending school, so no payments for four years - For each option you need to have hand calculations that determine the total amount owe..

  Who has the higher average salaries men or women

What is the probability that the sample mean will lie between 950 and 1050 -  What is the probability of examining 3 pages at random and nding no misprints?

  Direct and indirect price discrimination scheme

When a firm engages in cost-plus pricing and marginal cost equals industry price, revenue maximization occurs when a firm sells at a price

  Canadian economy further into an excess demand situation

1. For Canada, the demand pressures generated by the U.S. tax cut and the spillover effects of increased U.S. defense spending will push the Canadian economy further into an excess demand situation.

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