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Flashcards in Topic 2 Deck (10)
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1

What is the unconditional expected value of something?

The expected value of something given no other information

2

What is the conditional expected value?

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

3

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

4

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

5

What does the book mean by linear regression?

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

6

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

7

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

8

What is the PRF?

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

9

What is the SRF?

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

10

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