Capture a curvature in the relationship - quadratic model, Mathematics

1. Consider the model Yt = β0 + β1 Xt + εt, where t = 1,..., n.  If the errors εt are not correlated, then the OLS estimates of  β0  and β1  will be unbiased.

2. In the following regression model ln Yi = β0 + β1 X1i + β2 ln X2i + εi, all βk coefficients measure the elasticities of the Y variable with the respective X variables, because the Y variable appears in a logarithmic form. 

3. If we want to capture a curvature in the relationship between Yi and Xi, we have to use a quadratic model, where the slope is not constant everywhere and changes according to the value of Xi at which it is being assessed. 

4. If a hypothesis is rejected at the 0.10 level of significance, it may not be rejected at the 0.05 level of significance.

5. If β1  is positive in the equation 

(1)  Yi = β0 + β1 X1i + β2 X2i + εi, it can never be negative in the equation

(2)  Yi = β0 + β1 X1i + β2 X2i + β3 X3i + εi,.

Posted Date: 2/22/2013 1:57:29 AM | Location : United States







Related Discussions:- Capture a curvature in the relationship - quadratic model, Assignment Help, Ask Question on Capture a curvature in the relationship - quadratic model, Get Answer, Expert's Help, Capture a curvature in the relationship - quadratic model Discussions

Write discussion on Capture a curvature in the relationship - quadratic model
Your posts are moderated
Related Questions
writing sin 3 a.cos 3 a = sin 3 a.cos 2 a.cosa = sin 3 a.(1-sin 2 a).cosa put sin a as then cos a da = dt integral(t 3 (1-t 2 ).dt = integral of t 3 - t 5 dt = t 4 /4-t 6 /6

In the earlier section we introduced the Wronskian to assist us find out whether two solutions were a fundamental set of solutions. Under this section we will look at the other app

Here we have considered the following points. 1. Mathematics is omnipresent, powerful and beautiful. 2. Mathematics is useful in all spheres of life. 3. Mathematics can al


Find the Quadratic polynomial whose sum and product of zeros are √2 + 1, 1/ √2 + 1 Ans:    sum = 2  √2 Product = 1 Q.P = X 2 - (sum) x + Product ∴ x 2 - (2 √2 )

how to solve imaginary number such as like (-3v-5)² ?? Can I cancel the radical sign and the power of two ? and square the -3 and times to -5 ? hope you will answer this :) thanks

Evaluate the slope of the line: Example: What is the slope of the line passing through the points (20, 85) and (30, 125)? Solution:            m = 125 -85/30-20 = 4


Ask question #divergent gradient u vector#

Combined mean Assume m be the combined mean Assume x 1 be the mean of first sample Assume x 2 be the mean of the second sample Assume n 1 be the size of the 1 st