Practice Questions
Practice Questions
Delhi University
Practice Questions
Instructions:
Estimate the direct (Y on X) and reverse (X on Y ) linear regressions from the above data. Are these
regressions the same? Explain.
4. Based on the sample of 38 countries, the following regression was estimated:
where Y = Expenditure on Education (billions rupees), GDP = GDP (billions rupees) and P OP =
Population (billions). Test whether the partial slope coefficients are statistically significant at 5% level of
significance.
5. You are given the following data based on 10 observations:
(Σyi ybi )2
r2 =
(Σyi 2 )(Σybi 2 )
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Y = 367.693 X 2 = 402.760 X 3 = 8.0
Σyi2 = 66, 042.269 Σx22i = 84, 855.096 Σx23i = 280.0
Σyi x2i = 74, 778.346 Σyi x3i = 4, 250.9 Σx2i x3i = 4, 796.0
Estimate the three multiple regression coefficients and calculate their variances.
8. Consider the following regression:
9. Show that the OLS estimators, b1 and b2 are linear estimators. Also show that these estimators are linear
functions of the error term ui .
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