lecture 9 Flashcards
1
Q
in a multivariate model, what effect would beta give?
A
give the marginal effects i.e the change in
Y in response to a change in one of the X variables holding
other X variables constant.
2
Q
what is the form of variance covariance matrix of the OLS estimator
A
𝜎𝑢^2 (𝑋^𝑇*𝑋)^−1
3
Q
if the equation error follow a normal distrbution what will OLS follow and why
A
a normal distribution, because it is a linear combination with equation errors
4
Q
how is the unbiased estimator for the variance-covariance matrix found
A
RSS/n-k
