Suppose you are estimating the following multiple regression model using 500 observations: After estimating the model with OLS, you would like to test whether the null hypothesis is true: Outline the You are given the following six points: a. Determine the regression equation. b. Use ...
Use a simplified model of two independent variables to explain. Consider a time-series regression model below: Yt = \beta_0 + \beta_1Y_1 + ut, t = 1...T a. That is the problem if \beta^1 = 1? b. The variable Yt has a unit root. c....
Maximize y with respect to z (using the necessary and sufficient conditions): Hint: To solve a quadratic equation: , you need the following formula for solving x: Consider the following linear programming problem: Maximize 10X + 12Y Subject to 3Y + 2X less tha...