Definitions of the total sum and squares

Assignment Help Econometrics
Reference no: EM131132532

Problem - You have the following sample of data on the quality ratings for undisclosed faculty (Y) versus their rating in terms of perceived easiness (X) (5 = Easy 1 = Hard)

Professor #

1

2

3

4

5

6

7

8

9

10

Y

3.1

3.4

3.8

2.7

4.4

4.8

2.5

1.6

4.5

4.9

X

2.8

2.4

3

3.4

3.8

3.8

2.5

1.7

4.6

4

(a) Calculate the following X- i=110(Xi - X-)(Yi - Y-) i=110(Xi - X-)2.

(b) Assume that these observation were generated by the following model: Y = β0 + β1X + u , where u is the random error term. Compute OLS estimators β0 and β1 using the formulas derived in class.

(c) Calculate the predicted rating, Y^ and the estimator error u^ = Yi - Y^i for i = 6.

(d) Using the definitions of the Total Sum and Squares (TSS) and the Sum of Squared Residuals (SSR) compute R2 of this regression.

Reference no: EM131132532

Questions Cloud

Calculates the total annual compensation of a salesperson : Write a Java application using NetBeans Integrated Development Environment (IDE) that calculates the total annual compensation of a salesperson. Consider the following factors: A salesperson will earn a fixed salary of $100,000
Demonstrate the use of conditional and looping structures : The Java application should also meet these technical requirements: The application should have at least one class, in addition to the application's controlling class. The source code must demonstrate the use of conditional and looping structures
Create a program that displays hello world : Create a console based, non-GUI Java program using NetBeans Integrated Development Environment (IDE) that displays "Hello world!
Create a class called author : Create a class called Author is designed as follows: Three private instance variables: name (String), email (String), and gender (char of either ‘m' or ‘f'); One constructor to initialize the name, email and gender with the given values
Definitions of the total sum and squares : Using the definitions of the Total Sum and Squares (TSS) and the Sum of Squared Residuals (SSR) compute R2 of this regression
Calculate the volatility standard deviation of a portfolio : Calculate the volatility (standard deviation) of a portfolio that is 55% invested in Coca-Cola and 45% invested in Exxon Mobil stock. For this problem, please use two different Variance formulas and compare how results differ.
Calculate the expected returns on the stock market : Calculate the expected returns on the stock market and on Chicago Gear stock. What is Chicago Gear's beta? What is Chicago Gear's required return according to the CAPM?
Calculate the average rate of return for each stock during : Calculate the average rate of return for each stock during the period 2000 - 2009. Assume you held a portfolio of 70% Stock A and 30% Stock B during the period. Calculate the assumed rate of return each year for your portfolio. Then calculate the ave..
What is the volatility of a portfolio consists of an equal : What is the volatility (standard deviation) of a portfolio that consists of an equal investment in 25 type S firms? What is the volatility (standarddeviation) of a portfolio that consists of an equal investment in 25 type I firms?

Reviews

Write a Review

Econometrics Questions & Answers

  Determine what is the share of the tax paid by the seller

Qs= 3p Qd= 100-2p a) Suppose a tax of $5 is imposed on the buyer. What will be the price paid by the buyer after this tax What will be the price received by the seller What quantity is sold Show your calculation.

  I a competitive firms short run total cost function is

i a competitive firms short run total cost function is given bytc q2 40 q 81a determine the range of prices for

  Why can this building be considered modern

work will be evaluated for the clarity of the structure, the logic in the development of your argument, and the thoroughness with which you discuss the important point

  Identify and define two economic indicators

You've been debating on making a purchase for yourself. This is a product you've wanted for a while, but one that requires budgeting because you will be making monthly payments.

  Effects of an efficient economy

When a recession is over, do people start to immediately feel affects of an efficient economy? Use the experience of most recent recession to justify your answer.

  What is the maximum amount the company is willing

Assume that a monopolist considering to spend 500.000 usd on large campaign to promote the their products.The demand curves are defined by p = 150 - 3q, where q is the output-quantity in 1000-usd. By executing the campaign the firm expects the new de..

  Determine the effective monthly and annual interest rate

Picabo borrows $1,000. To repay the amount she makes 12 equal monthly payments of $90.30. Determine the following: (a) The effective monthly interest rate (b) The nominal annual interest rate

  What is population of freshman the distribution of number

A math test of 100 questions was given to a random sample of 20 freshman. Suppose that for the population of freshman the distribution of number of correct answers would be normal with a variance of 250. a) what is the probability that the sample v..

  Why are most companies not like sas institute

With the help of examples, explain how the people management practices at SAS Institute are different from the practices followed by many of its competitors in the Silicon Valley.

  Calculate the marginal tax rate

In solving the problem,when your taxable income lies exactly on the border of the 22% bracket ( so that adding one dollar takes it to the beginning of the net bracket), choose the next bracket i.e. 26% as the marginal rate for your federal tax, t..

  What is the interpretation of the various coefficients

Estimate the preceding regression. What is the interpretation of the various coefficients? Give a logical reason for why the results are this way

  What if the farmer has the right to clean water

What agreement will the mill and the farmer negotiate if the mill has the right to pollute? What if the farmer has the right to clean water?

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