17 Uncertainty The Measure Of Standard Error Can Also Be Applied To The Parameter Estimates Resulting From Linear Regre 1 (587.98 KiB) Viewed 23 times
17 Uncertainty The Measure Of Standard Error Can Also Be Applied To The Parameter Estimates Resulting From Linear Regre 2 (300.78 KiB) Viewed 23 times
17. Uncertainty The measure of standard error can also be applied to the parameter estimates resulting from linear regressions. For example, consider the following linear regression equation that describes the relationship between education and wage: WAGE; = P + ₁ EDUC; + & STEP: 2 of 2 where WAGE; is the hourly wage of person i (i.e., any specific person) and EDUC; is the number of years of education for that same person. The residual ; encompasses other factors that influence wage, and is assumed to be uncorrelated with education and have a mean of zero. Suppose that after collecting a cross-sectional data set, you run an OLS regression to obtain the following parameter estimates: WAGE. - -10.1 +3.1 EDUC
WAGE, = -10.1 +3.1 EDUC, Z If the standard error of the estimate of B₁ is 1.04, then the true value of ₁ lies between data set grows, you would expect this range to in size. TOTAL SCORE: 0/2 As the number of observations in a Grade Final Ste to complace this sad and unlock the nece
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