In the multiple regression model with two regressors, the formula for the slope of the first
explanatory variable is
(small letters refer to deviations from means as in ). An alternative way to derive the OLS estimator is given through the following three step
procedure. Step 1: regress on a constant and , and calculate the residual (Res1).
Step 2: regress on a constant and , and calculate the residual (Res2).
Step 3: regress Res1 on a constant and Res2. Prove that the slope of the regression in Step 3 is identical to the above formula.
Correct Answer:
Verified
Q6: Imagine you regressed earnings of individuals on
Q10: When there are omitted variables in the
Q17: The following OLS assumption is most
Q20: The population multiple regression model when
Q21: Attendance at sports events depends on
Q23: You have collected data for 104
Q24: In multiple regression, the
Q25: Females, on average, are shorter and
Q26: In the multiple regression model, the
Q27: The administration of your university/college is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents