Topic 2 Flashcards Preview

ECON2271 Business Econometrics > Topic 2 > Flashcards

Flashcards in Topic 2 Deck (10)
Loading flashcards...

What is the unconditional expected value of something?

The expected value of something given no other information


What is the conditional expected value?

The expected value given some information, ie, The expected value of consumption given anincome of 100000


Show the form of the predicting equation in simple linear regression.


What does it mean for a model to have linear parameters?

The regression coefficients, but not any other variables must be to the power of 1 only


What does the book mean by linear regression?

That the model is linear in parameters - but not in variables necesarily


How is the PFR of Yi modeled in simple linear regression?


What is an estimator & an estimate? Are they random?

An estimator is a rule that shows us how to make estimates. The estimator are random, as they come from a sample - but the estimate is not, as it will never deviate from the sample it was calculated from


What is the PRF?

The population regression function, a relationship between variables in a population


What is the SRF?

The sample regression function, an estimate of the true PRF calculated from a sample


What are intrinsically linear & intrinsically non-linear regression models?

An intrinsically linear regression model is one where the model can be transformed so the parameters are linear. An intrinsically non-linear model is where such transformations are not possible