Topic 2: Introduction to Linear Regression Flashcards
1
Q
Show a simple linear regression model:
A
For all i:
2
Q
Show the simple linear regression model below, in matrix form:
A
y = XB
3
Q
What are the assumptions that the Method of Moments makes about the expectations of variables?
A
E(u) = 0
E(u | Xi) = 0
(for all i).
4
Q
Give the two MM constraints in equation form
A
5
Q
What is the simplified form of XTy?
A
6
Q
What is the simplified form of XTX
A
7
Q
Show the steps to get the Method of Moments Estimator for a simple linear model.
A
(1) From constraints of MM
(2) Put in matrix form, multiply both equations by n.
(3) Write in form of variables
(4) Solve for parameters.
8
Q
Derive the Method of Moments Estimator for Multivariate Regression Models
A
