A2 Linearity And Unbiasedness Properties Of Leastsquares Estimators

CHAPTER THREE: TWO-VARIABLE REGRESSION MODEL 101

which shows that pS2 is a linear estimator because it is a linear function of Y; actually it is a weighted average of Yi with ki serving as the weights. It can similarly be shown that p91 too is a linear estimator.

Incidentally, note these properties of the weights ki:

1. Since the Xi are assumed to be nonstochastic, the ki are nonstochas-tic too.

4. £ kixi = £ kiXi = 1. These properties can be directly verified from the definition of ki.

For example,

Was this article helpful?

0 0
Budgeting Basics

Budgeting Basics

Get All The Support And Guidance You Need To Be A Success At Budgeting. This Book Is One Of The Most Valuable Resources In The World When It Comes To Get Your Finances In Order Once And For All.

Get My Free Ebook


Post a comment