Module 9: Multiple regression
(The attached PDF file has better formatting.)
Homework assignment: Two independent variables
We regress the Y values on the X1 and X2 values in the table below.
X1 | X2 | Y | X1 | X2 | Y | X1 | X2 | Y | X1 | X2 | Y |
1 | 1 | -0.395 | 1 | 2 | -1.705 | 1 | 3 | -2.942 | 1 | 4 | -3.634 |
2 | 1 | 1.942 | 2 | 2 | 0.964 | 2 | 3 | -2.463 | 2 | 4 | -1.349 |
3 | 1 | 1.717 | 3 | 2 | 0.206 | 3 | 3 | 0.397 | 3 | 4 | -0.982 |
4 | 1 | 2.258 | 4 | 2 | 2.908 | 4 | 3 | -0.092 | 4 | 4 | -0.235 |
A. What is the least squares estimator of á?
B. What is the least squares estimator of â1, the coefficient of X1?
C. What is the least squares estimator of â2, the coefficient of X2?
Show the formulas and the computations. You can check your work with Excel or other statistical software.