Scribd
Upload
6 views

Practice Problem Set

Uploaded by

f20220642
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
6 views

Practice Problem Set

Uploaded by

f20220642
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

1. What is regression?

State the assumptions necessary for OLS estimation of the two-


variable population regression model.
2. In the context of a two variable linear model, prove that the OLS estimators are BLUE.

3. Show that in a regression model without an intercept term r  2  Yˆi 2


. [Hint: for the no-
 Yi 2
intercept model the regression line passes through the origin]. Compute the slope
parameter and variance of slope parameter in the context of no-intercept model (also
called regression through the origin).
4. Distinguish between standard error of an estimator and standard error of regression.
5. What is the difference between one-tailed and two-tailed tests of significance? When
would you prefer the former? Why?
6. Explain how you would assess goodness of fit of an estimated model.

7. State the relation between F and r-square in the context of a two-variable linear
regression model.
8. When does the regression line of Y on X coincide with that of X on Y?
9. You obtained the following regression result:
Yˆ  50  2978 .5 X
t t

(629.3)
r  0.6149
2

(the figure in the bracket is the standard error)


Find out the sample size (n) underlying this result. Also interpret the regression result.

10. Suppose the true model is,


Yi   0  1 X i   i
And the fitted model is,
Yˆ  ˆ  ˆ X
i 0 1 i

If the unit of measurement of Y is changed with the new measure Y*, where
Y *  1  2Yi
What will be its effect on the slope coefficient.

11. Ecologists have long known that there is a relationship between the amount of
precipitation a location receives and the number of trees that grow in the area. Suppose
that the yearly rainfall (x, measured in mm) and the amount of the ground covered by

1
trees (y, measured on a scale from 0 to 100) are recorded for 49 geographic locations. In
the sample data, x has a sample mean of 1182.4 and a sample standard deviation of 226.0,
while y has a sample mean of 49.6 and a sample standard deviation of 7.1. The sample
correlation between x and y is 0.673.

Use the information provided to calculate the regression equation.

Calculate the predicted amount of tree cover for an area that receives 1230 mm of rainfall per
year.

What percentage of the variability in tree cover is explained by rainfall?

For this data set, find the degrees of freedom for regression.

For this data set, find the degrees of freedom for error.

12. What is the difference between restricted and unrestricted model. What are some of its
applications?

You might also like