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.
Was this article helpful?
Learning About The Rules Of The Rich And Wealthy Can Have Amazing Benefits For Your Life And Success. Discover the hidden rules and beat the rich at their own game. The general population has a love / hate kinship with riches. They resent those who have it, but spend their total lives attempting to get it for themselves. The reason an immense majority of individuals never accumulate a substantial savings is because they don't comprehend the nature of money or how it works.