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Ecotrix Notes

The document appears to discuss various statistical concepts and methodologies, including Ordinary Least Squares (OLS) regression, assumptions of linear regression models, and the implications of multicollinearity. It also touches on the importance of residual analysis and the interpretation of coefficients in regression analysis. Additionally, there are references to specific statistical tests and principles relevant to econometrics.

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0% found this document useful (0 votes)
14 views34 pages

Ecotrix Notes

The document appears to discuss various statistical concepts and methodologies, including Ordinary Least Squares (OLS) regression, assumptions of linear regression models, and the implications of multicollinearity. It also touches on the importance of residual analysis and the interpretation of coefficients in regression analysis. Additionally, there are references to specific statistical tests and principles relevant to econometrics.

Uploaded by

LLM AI
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
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Git Principle. of 7 farctmony « cal net Tee Ga, Meacuwement enwon I x baa (8 Ss a [ser pce Powe At AM +h ¥3 es hima fort of Ey ly T jem Be | y= n ES ; 3 ge uw = pp tye Ufa Ee a ia. sample fe vor PE neal n uy fap on PRE usd Nic Pit Poy Ur -—> PRE Ye i+ Pye th Spas ; ais Tp ely lk 5 pha — v batt __ | Prepenhes of aed a rot ae re E[u= Othe. “iva ages = fit fedur 4 “efulxy = Spt) Ny cena ake assump hon PF Dentiny the adoarge Least Spates (as) 4 We cal he ther ste@l ih, to eieniaceide PAE Sand a to do it ic Hw. O16 lle. will choote. an RE that uf __ minimize the. sum of , teci ra term _i-@, Nevidual cu of pees ee fact & S [Ye yh) ) ee 4 oe ce def 2-2 s (i-P- Po) a=-asd oF, | dsui* 2 -3 [a= Be px) a OP, a2 gba S¥=nhe OSM, Sh = Pout BEX TONS iN i = ee eee fe 5 [n-7) [yi a. [ee y - ox | iy See ee) Ordinary. Least Sovanes ath: E I Ye haw | = Bt RY tu a r | E ; J | 7 ae a ost = EUS oo Fete |, B= wa ~ + Sop = 4, (y- {pp ire SR aa or) (h-¥) eS hi ShQ= — ag ree Soo paeeeice ite: We Sia) + = >| ne zi [hurt ¥ 2M ara ee ee ; 1 | | | | SST a SsR+ Pam es PONE Now b bide of gulV29) =o < Ie, SST_ = SWE + RSS Dividing by cs T — _L= sce + Soh Ate R*+ SST ssTt R= coeMMrcient of deleremination a | a 4), OTE a bed iene NA lie 2d — Seppe £9. ) = "Salanay 2 169: M+ tS we, | R003 | a= 209 anise, in the Bot _emphoyeer =. Wy Stahicheal Paopenher of OL Fetimators ——— Wabiaseches: fopenty of OL6 ee poxametess , Y= Et avew i) assume that oun data w obtained as wands | ample. Yes fo th Xi + Ui Rete ne fa) Zs Gadihonok Mean) Elujx)= 0.1 a °, am independ, oO, at to_tHe. same, constant . af 2 {u-4)[4-¥) = 5 (u-7)% 2 Ba Slee 3 He 5 fer) (Ait dee) é 2 ftir)” Cri= Og te a A 3 [n-3)=0 ond 5 (y-7) t= 3h F) = See ea Pipi Pe Cape ae ral i FLU ot stern pane Te | on t fos proving censisloneys propel we need aaa Uh NO), Ome % a rn “a \ a sty Usiog. assumphon O&O die Dox SS oe, ie Ge - | — __ b SRY { LU; +. ! 4 said wl oa to Le 1 he 4) | YaQeey -u ——O \ + B= ¥y x AY — © “| fading @Q fh G) —— - [Es pC pes i PRya Sane TN ay sat eft fic A+ O —~ wh elie net fea-0)e + £ la) 3 ke styp+ £ [B: Ea & \ ye an pe a eae en ER oe Vow (ule) =e [fee ]#)= [eh | 2 F flula) = 0 Jey . Vor (tutse ) = efurfe) Ss = standaw vi Assumption Wages > + Bedu + 2 benye + —Vowiowe af 18 eetinatons is ; he | MGs a Re | \ Nay Untendifional, yaninnre of WU t Vin Lule ) = & Sane hey . hepau tt P f ws ve Vox (6) = 2 n! Sait lel aaa a AY Gauss Maxkov “Theonem Blue 8 = Post —> vewian— | L = Lfreax fn _paxounefers: “yz Ualtasedn ess» Esknaled valve = THY PoP Volve £=Hficten ey = voriance shoubd be. minimum | A — A Sapling Dicdyibuten of t imap. a phe Cis Aowmality al pic eos is pa ciona catdn 20H0 ad vaniance % 2 LW wlo, 22) “heater @ Und M ascump hon [a= conditinaL on Ke sample. aoe £ oF fe independent vautio bles “ wie pg FY N i Vax a J e oven the woge Wears clade th "(a Haney act ee wee Rea Aredd eh semana Hh exp 4 W avs ay ede & HaUKe, the yeas A erpenieare by re fee, ets) OTE _ ewtame fry oe Sth | Z U | yj. Bhan 8S oy Under CLRM assumphan 4h 6 — ie a 7 tai Kad 2 no of ae m4 acy nekd Sifiee es of Panamezers ae I q Ce) * Cuitic chene, Rit ane the. yaknowo on aaah ca in te alata 0 pu model. ta 2 few (Kee on Were Fo) } flake aad_f os Arto md Pa atin cept ta ss ied we Ps yo ene Haile Ay hg OM Pied Tn tp 20 Reject He \ fe} coe Dam ethos sechtieHoac abovb_ sad f Week ia fa Hi Hy DATE. e = PAGE. Ny lo ! fe! het i a de toe-) 2245 Allennatve ¢ Mt Arr | oll 1 Gey, 13 > ie Rect the_b By bean, found > pe A Babs c (gi) om ny a x A Bes prac se (3") (uppen fon \finea Com bina fo 22 Ne: of Gears fn a vaiverrity + Prune + Py expen + 2 04 CO 10 Gonion, callege Hy: A= Po. Wt Bh < fo : But 8. BO soy, 2 p— ito [eto t. fea grep. ja ay | “se (B-8 ) let 6= ~~ fo ee TSille toe p= Hy t 6S 0 B= oth = Ls) ep (uage.) in +forh Je +8 rB, [un eb ap ea 3 si ified + oniv )4 Be exp + UM TOL no. of year 1 Je & viverse ae O° fer Fan H Ss 2B +h oo + B +2, + Py Auossy +85 Wy £u L_tohene,. Pee: boy of pou yearn j “7 Thalia T 0 — = Cow Pe hve ue home, Nuns f foot = aa big 2 stuns hate d pea Ye ON wiht Pas Pye Ps = 0 : | ns tnt C codel <— op lsalany ) = Po + fr years -b +8. spaeteeg te | E> [SsRu = 980m 2 nz tof obs. Lara [aii apeigfe 7 Len aePE ET raat | Ruy 2 Residual pum of | . Madel oATE. wy PAGE. : | i etka Regen Renu a Y/x coed. pe alee Je Fee 2 ot heb of — envel mer} o002"** a:000 ve asf x =p/. | ane = | Teauste, 0:1239"%* 0s Experi ence. a.f2y% O10 | \ ™, Lyle Requesstan Aaalyets —? O1s Asymatice 6, wae BIL rene Vil se NivYe p--- =a of sto‘ Thea» tle tao tinsisdent echimaton of eo, ft Lv oveney Epa PJ iu,—e] el D0 as aw i te aaa a Tectia) ft *f . ! 2 = 12 ' aay) 2% =a) sete a}ro ag [ee Lv 38 (a $8) ED ea 6, € (bi <2, )2. ayy, ATE . “oo . ih + cov fu) > ¢ vee Now wt xp Br) AEP Plauen us Var oC. - o Cov + plin RP, a cov (xu) ale) See dX + Ate dott FeO Ride Ayn ave. cena bts Oot alt of Shenae ane Cua) 1) reno | MM + ete + Aste d 2 stant dO = gt = X, 3 Xah Relaachiy bed Xe. oe 2s | 10" gp vo pe go a2 PenehcHy eg 5 fer fect oy 20 YO" 4p \ ee on ames ted the WINE” aA Adj th Nigh Rea Ay R* wil! be 3 ye Elechicity consumphoa a 0 Xa 2 Jnome Xj: Size of He house Vo =o + Pit + BA lade Tassos en non. (ds eaten saellce ecbnck. ee this medel, ceffeients ple be ‘asia ‘tant ani eh i k*_yabve. Ua a pole » Sea ub feollineanipy : i ne Pa: + Bae + {fr fen): (aa Ih Xu = 0G. . ; re [24%) Samat) — (Et az J Snide) [(ex?)] (atJ={ gan) a [syn [s yen) — SYA MG (San2) j cS ait (0H) = (3 i) Pear Nemes oe HiXS AS Satyr — Sa xeed 0 | {ae ae aaa ig less than la oe} coeffrrie ont a“ aly, OnE 4 Phat x| Tt mulkilinernity is ipo ect, then the epee | rwelQevents of X2 variables ave. indelermingnt ond | thei aoe eNNort atte. infinite. + ale joo et ent “ch means sella ueh (fel add & check R*- IP p?=0 , vani TUES ait, adt gts Tees bbe hgh " \ ny » . e, 2 9, ati ia Li] 1% filrnoni ol wepreceton bd saith Vastlaus panes | . 6 al \ x Ru mkliseg weg tested SS b = hee of gyoduatre & nd edie =. bof ms Aa © nm. fi 2 walle nalange of | x a » n | ante g i T : GP =f wy Detechon of MuLsrolline auity Lok = | wees taney 2 7 Vou [be = a vaniance oy “Hy 3) mone reliable, ehmatan = a prrenre n : fees nol (es =H from. avxi z ine Lhe ul here | it pha > Xen 0 iy, ome “= phat “[ibet, Gon awe 2 ada TE Vit > £0 9 high dace oP oubbell ani SS {VIF 4 10 — 3 modewate chances of my fi” : VIE 4 § —» move chances af no vl a Remedial. Me Osun 66 | Sait y ou pate nad : a boat : i a 4 : tig as el al sa I Nooiedastiey POL ¥ 2 pot ' | ; Ch Hekmercedtay “There is mone. varia ble ty associated with (b) + oa — x Time senies — ftoconreelafion A — w= PGE le einaat steph fone. “if daniel Namba Aelita atl Pe | | scale off | Heleweceedas de: ote inf cmoss ~ sechonok thle instead. a am Recuuse. in cross sochon, Hew ee ig | ontvlan fim A vaniables can have Mf. wales, a en of Hedomocce off Hedenoscedach ci fy ey OL. ectmaints ae. oill fosat w | S a vabiosed. & _ a 7 vobi ased, hut Hey ase oo w) The “ig yest edad as (ea) = te ieee ie é : es — dV Reteckon af Welewoscedaktity anal QO) Gwaphcal Examination of Residuale “i a a =e F \ ae T x Zz a cor te | \ Te | | DSi Ue x €e7 (e-—* a +} | Fifa epics tn_aelthinsh cm wnclant —Ybamaseeda. x fia. 6), iets same elahanchip - 7 2 ; (ii), GLejsen_ “Test ttle ee * epee e: spit Po ft) + ii Hy + Po = 0 Ww) \hete Test [best method to. detect helewscedacheity | ad Yi = fe Pa Xat + Byer + Ue Wo ah ee ate A + et A de soalloy Le ics wepueteo ne RA Vis est Noll ¢ no heleweccadachhy Mt > Kiutteal. 7 _§_4, | TB you weechsthene js | |_K= 00. of splines vouriables helencstedactiatty. je f Z (ee in the. Roded when P-valiie. ic smal) | | tt > Newiheah {il When 0% js known EY method of weighted y Ny = Ph + Pade + iy eet Span Smee cer ee) fale ay, : wis Bo fe) A ae he a é Nea = no Se Eat Cosel lolen EuNON vanianie IS _properdon ale AY pineal en h standawd enreon Salat Weleyeescedns he ly adested Rolust Shand ur oo’ gy, te PAGE gt (i), Ichea a ic_voknecog rae ls E [ui )= oy; pee = Pet ype Pe a a ano Pig + Pa var +0/ | Vat of dhe vaniable Gi e ‘ 2 i} will c wi) aie best « oy S : To : L 4 a = iy 0. Cov {Ue uy.) 40 0, mato t ih GL to ° Os CGuEAtes On 0) ‘i an. hase! ow 8 Ti rH 10 no Longen efferent ve they ane ast BivE = a an @ id» 4 sou mu Aviaaal AA @ Checks ; Nee ‘0 der Z Us = ell, + Vz AR (2) 6) Expl voi aed (ens es "2 Pie oer ater bon Taal Up ane generale d by net onder auto aspecsio on Scheme (Cl eee eee pion to be. non ally. dici ied: |_i(ey Reston on. a) does noe rnchy d. ee Dogyed ee e Aépendent varia blex As__on e of then eaplonahny. —_vamiables _- oH Lota a de A Ce ‘ ite) fies = as : —— = fity* SH kn ee ds s(ixst a) PT | Ste 2 Ub a - Sit —_ Let _f sete oc d 4 2(1-¢) and -yefed 2) dey Brovedh Grud heey Test Ye= B+ PY, a Ue =f uy | {=e eee lle pi+ Cy He $ (i= fo =p ie a fee iE Ee i (pean Oa Net Pin is , mn cme e ~Meweye weet BO totwected oF Se “we ia ~= pot E | Cased t= When fia Ano wo | | Lose te —— _ Ye = f, t pote +lh-) ie ie Pe i Mant files F a 2) [Ye = Pra1)= a fet J+ he nt hens pe, ft = Ue = ples : Jyt 2 pts pt a” tle Bi aff [x4) 3) Me =~ fix toh Amel t Case 2_'- when {is not knows Phas infin et ne Foam MassPecsELCAuoN [Dag wage = b+ Aedy +f eapen 2 douexyas™ PL = Bt rede +B female. +f ate Bales (wp sese —t Repuescion Specifration Funan Teck | yeh + Ate, + Be ton + Peale | Ye for pa tht + SM + $n fh+ eNO This va hit and fui method - We cil be, adding of My ” Vaniohles Hill $= 0 a B40 ond dy ei 10 funchonal_& bela / See ie, 7 eos Lad Peepers a dd = df’ ) _Vsin 0, fanfab Jos 7 ‘3 Using _preox iable exved expt v . =f, +P ¢ abift + poy tye Rt An + ba +f %* + Ui Undead abi youll we use intelhy = en fr Bion ets fo +fgXo + Ds oe hore dato is available —F ia_selecton ee ons i i ogi (CONK G = | ce enNoN, ha » 1 Yo, He L log 1 \ Pity > fp-tbl [etait ots bbs 4 thle i i. er + Pade é gaat Bx, + thos 2 dite Tay e y = ~ Bla i wl" ty fe vaxiable, pose a a yt a Hepa stall viable ay. ifsitif —— ote Tapa oie 4 a. Sansa fac cuime. wate ene oe ill ted with Tet wad ihes-siel roe > sul give biased = Gly it ncbudingn cnime. B Measuwement Enron Exon. [iaoabdetdge) * ois 2 B+ 00) belie t- - poe + PrTe +k Zz -y* ee 4-4 | CR ip ladles hilo es Prag + [Lt bo Reon exm fs voldetdye ) / Dinmy Varraotes |! Syl .. hodependent. Donny _ | Vantah De. a Veer ie = A ah Aisha hed ae 2 & wnge = ~4.5¢ — 1-84 fomafe + 0.5%2 edu | #0025 expen + ots Lene Linz sae, Ree o9eY loeb. tt Lt 7 2 Ley il é tha S ti a i ; bene, fomater ane eave Leth B ae la fess thea male, ee WY peed ) se tay ef denen interpret, withed he Fi (din ier’ nh hy ars Ge CA GPA 106 + ots PC a Ht hy GPA 9-008 F ACT reese Ue pee nz s4S , R* = 00249 — “ 20024) ot coareee eh pe wpe ih shudewh 00s 0 pconpa Bit es nny vaniabl Pe £0 wi le: word salt r= otse —> Clleye, rh of o stedeat ts 0.157 B mete. ee lt ae anes the sdeat hes owns a Pc. grongared ; & one why doesn't 9#0 = | (uz) Gsy hove of tuaining R* a ae gaaak ct if" the fin neceives job tunining —gxaut veal quant 20 otherwise. af g pnite) = 5: gh toe tog [tttive) + & wt Ly fpgu ft) @ — | ‘ + 0.02% hedmoom +0054 ile nz ff and R= 0.649 peso say Poe 0.084 f : Wn ape thaa non=tobaniol be of house owe Le fufes to), os PNGE ar Usd ny_veninblee fn _mul lyfe._categutes p magated ee | Qos (ure = 09a, + Mole mae cab e = 9.644 many. fem LE UF ~ono si Lom + 0.0#4 educ + 2.02% expen i = 0.00054 exp? + 0.028 denywe = 9: 00053 tenuye t ne 526, Ro Yor | : x hase categorie = single mall | poh NO NB SS?) nied ean, at mo tha | siogle male | Hi - 01 $1§ — eared LomoLe eunn 19-8 7 bess Hon cinghe mabe. — - are = 0-098” ‘ : aoe WO €. diffe wen ee single. Rraby math masiNied Lermalp 32 Tocorpanating. Ordinal Iefuemasien Mans 6 +5CR +&CRo +$q CRs + dy CR + then darren ; | ACTON a The omiee ib eke | ceed if re a2 LR, = 0 otherwise | CRi= 0 otherwise LR CR CRs CR dunn Voriob les, Cry. ced Kahne are y A | Timiko eR=3 1 ici i \ Ro zh a eae coble: i ity phedit Ha i 6 coh - oiage 2 aa do, oO" noe | dnd BR changer by ‘gauntt if Ca. aye a L wath ea fave bring. ee vaniah bes a x = M924 - oo femaly 4 213 Manni ed +o j = 0.304 female - manretpod. a6 “ie By maumied male 7 0321 40.219 = 9.534 (female =0J and mannied= t) ae ig laage = fat Bnalt JA(E. 3h Rake Jody iW sf aale.=2, intercept fen male = fo 4 Then Bes mah =o of ob ' = difkenence we e) bet” the educa fon Levck of mabe. aad Reatade” 2 IE Roake= 1, —islecept Bs Bale, =(t 4 do) slope te en hee ene) Te seeduwn oo edvratan~bet” male. and male | Linear Pro ABILITY ove. PRot et Pa A Bans Depo tatable dean ahi jo WHS -y 2 f+ fioy Pe ---+-+ + Pe Ae Sa = Pulses) failune cia pet — 2) _Sveresy chan ir +B = Fo a vpit hanes i hat is_4h Noha he Bulag, piven Neen | incre tobe force husband earning Ye “ Qin ff = 0-56 — 0.0034 n wife for + 0-03F edy t 2 6.034 expen 4 ad expe n™ Hors ce = 6-262 fidy Ot tdi een ea Parenb wha have eds OPE Parekh ahs hae fess than 6 4 ag) mies, ost 2.\25 PANEL DATA all Coshinabian of CHocc= ane anil tise. SOMiOe 2 det. +: Bloaced Pore 2 N=T 7 Unbalanced Pane h : ANAT. 2 Mopet-£ : fesled OLS Reguescion [tanek. coafl aaedkl e j Mopee-2; Lspv: leat sq Diy Vana tl — x i ao ot = PAGE —Awape ped! fined EM d Willig Gamup Medel 4 [eee Pande Elect Madal i ~ ) Posted 018 Reguessian = t ier al load Pach Ce (E ee by +B Pes 2 lhe ee & iS rm intencett 19 name Math Foe 5 IN | wie (es t= hme. poosiad cb Sr) Eo Me ss P he rach £" the ay 4 | (i ma en ge | aes ft) com 4” _ Rew htc Laeff Frob. c [5 58559 o- bo1g Ris aay Q Aoag lly 0+ 0000 (a= 0-434 PF 4.21593 2 Durbin Waton Le ~ 3065453 Limdabe os + Down't acwuntictre ivaabseuved —h i actors he 6 sinbiner fabs. helene geneity 1 cconnleed in ane hem. Management Phibesop hy Cup = 6 + Be Pre + Pe Lie + By, + Usd Chime iavasion) | Ces Bt Pr PFe + % Lee + i + Wie , Time Lavanian t Pu, = He | dash of Dies Oe lhe J UnobsemvabLe mie isa _possibil Hat 11 anal J =a ae é' | an OE TEM TTR atin cdNlee, Crs 2 Ob + % Pfie + Pa Die t+ die | Ge: ; Vou ¢ Se | Ge Lfie)e & Gin + Pa Phin + Polfre 4 Uh | | Ee dD Vane cmos Li tececopt vaeey fieecs, Diba a Meo hass im 2 2 Techaigue = Ce =p + We Dar +s Dar + Wy Dur + We Dor + + Podta + Ba Pig # Py Lhit+ Hy ZL Eaimdlines 3 5 dummies Rxet ainfine £ * base a tego y. cane H% : DiPl bet? cot Gl afae 2k ainkhne Z oO Pefun Tha fed OEE Ro! meguesceons cai ais lal Ladere | i ti(uny eT ano not that Limbations $= 4 ¥ We wwe OT eae af leowees of ee ji - — | be 00 breeder the ~ of Liceed 1 Samy te | Preetams t gy es i aa. 1 i bat AO PAGt_— (yt we aa Ee lll Me ee ; Po. ae Shi Ys col vb ia b Lo. peek sas tie “acca | fw time. invaniant a LC = Be +B phe + Py dle + Ure apa al eonee (olde Sevens Peitpe ae Shoe ae cackt. Lyolve aby the Omg 9319022 0+ 000 pre 09293 ave ae ppF 0. 44307) 0:000 Dyk = 9494 D6 & 0000 ita ene Phy the ingly volves ee Cr- fs O = per @= Boe Ahavidval ars antages —— 7 U “4 hig wage = fy; + Proeduyt fo ane yp + By denun 1 e. — + Bs fem ules. + Be ware en teiho Sugita vawiant varia bler. (0 iy ‘thexencng, we are oping out on Hininating the mY WV, (| ae = { on —e ~™ PAGE $$ « Randam ffleda Madeh_f REM, plantain TCin_= Py: +P, Oe + fo Phe + Py LF + Wie ba «| Be = a tombina tion ae teastant B value. ond. | t Noaddatis Sala 2 pict Bea wy \y saa dom “etite Mean volwe gra TC = Bi t+ Pi Qit + Po PRs + Pyle + Fi + Wig aaa Cit = Cp + Wie Cw wn [o FS) ness c[euit)=6 Un, ~ ni /o Ee) Coeff fob x Ce 8 section a wee = a C40 7434.9 0 000% nondem /é: )= 107 ype : Q 298358 h- 0-000 * (Unt = 2soyo2.¢ 7 ida 4.32359 0-000 Pode z + 08 te “LE 30s4aq 4 0-00 0 9,505, igen i Fixe? ; | ta a wes eel ee = Q - FF064 j 2 ce é 6 ee

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