Info

t1 - ^VE x22iVEx32i

In all these formulas a2 is the (homoscedastic) variance of the population disturbances u.

Following the argument of Appendix 3A, Section 3A.5, the reader can verify that an unbiased estimator of a2 is given by a 2 =

7The derivations of these formulas are easier using matrix notation. Advanced readers may refer to App. C.

8Using the definition of r given in Chap. 3, we have

Ex2tEx3t

Was this article helpful?

0 0
Rules Of The Rich And Wealthy

Rules Of The Rich And Wealthy

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.

Get My Free Ebook


Post a comment