in the function Yi= ?1+?2Xi+ui, the term ui refers to
A)variable
B)parameters
C)coefficient
D)stochastic error term

Name: in the function Yi= ?1+?2Xi+ui, the term ui refers to A)variable B)parameters C)coefficient D)stochastic error term
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Question

Quizplus · Accepted Answer

The term ui in the function Yi = β1 + β2Xi + ui refers to the stochastic error term. It represents the random variation in the dependent variable (Yi) that is not explained by the independent variable (Xi) in the model.

In the Function Yi= ?1+?2Xi+ui, the Term Ui Refers to