Solved

Assume That Your Population Regression Function Is Yi=β1Xi+uiY _ { i } = \beta _ { 1 } X _ { i } + u _ { i }

Question 53

Essay

Assume that your population regression function is Yi=β1Xi+uiY _ { i } = \beta _ { 1 } X _ { i } + u _ { i } i.e., a regression through the origin (no intercept).Under the homoskedastic
normal regression assumptions, the t-statistic will have a Student t distribution
with n-1 degrees of freedom, not n-2 degrees of freedom, as was the case in
Chapter 5 of your textbook.Explain.Do you think that the residuals will still sum
to zero for this case?

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents