Professor E.Z. Stuff has decided that the least squares estimator is too much trouble. Noting that two points determine a line, Dr. Stuff chooses two points from a sample of size N and draws a line between them, calling the slope of this line the EZ estimator of ẞ2 in the simple regression model. Algebraically, if the two points are (x1,y1) and (x2, y2), the EZ estimation rule is: 1 2 – 91 y2 - bEz x2 x1 x2 x1 Assuming that all the assumptions of the simple regression model hold, namely, (SR1-SR6): (a) Show that bez is a "linear" estimator. (Must show that bez can be expressed as weighted sum bEz = Σ wiYi) (b) Show that bEZ is an unbiased estimator. (Must show that E(bɛz) = ß2) 1 x2 - x1 yl

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter1: Functions
Section1.EA: Extended Application Using Extrapolation To Predict Life Expectancy
Problem 5EA
Question

PRACTICE HOMEWORK

Professor E.Z. Stuff has decided that the least squares estimator is too much trouble. Noting that two points determine a line, Dr. Stuff chooses two points from a sample
of size N and draws a line between them, calling the slope of this line the EZ estimator of ẞ2 in the simple regression model.
Algebraically, if the two points are (x1,y1) and (x2, y2), the EZ estimation rule is:
1
2 – 91
y2
-
bEz
x2 x1
x2
x1
Assuming that all the assumptions of the simple regression model hold, namely, (SR1-SR6):
(a) Show that bez is a "linear" estimator.
(Must show that bez can be expressed as weighted sum bEz = Σ wiYi)
(b) Show that bEZ is an unbiased estimator.
(Must show that E(bɛz) = ß2)
1
x2
-
x1
yl
Transcribed Image Text:Professor E.Z. Stuff has decided that the least squares estimator is too much trouble. Noting that two points determine a line, Dr. Stuff chooses two points from a sample of size N and draws a line between them, calling the slope of this line the EZ estimator of ẞ2 in the simple regression model. Algebraically, if the two points are (x1,y1) and (x2, y2), the EZ estimation rule is: 1 2 – 91 y2 - bEz x2 x1 x2 x1 Assuming that all the assumptions of the simple regression model hold, namely, (SR1-SR6): (a) Show that bez is a "linear" estimator. (Must show that bez can be expressed as weighted sum bEz = Σ wiYi) (b) Show that bEZ is an unbiased estimator. (Must show that E(bɛz) = ß2) 1 x2 - x1 yl
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