Consider the following regression model: Y₁ =B₁ + B₂X₂ + B3X31+ B4X41 + U1 Using the model above show that the maximum likelihood estimator for the variance, var (uX21, X3i. B4X41), is biased (be sure to comment of the nature of the bias).

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
Section1.2: The Least Square Line
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Consider the following regression model:
Y₁ =B₁ + B₂X₂ + B3X31+ B4X41 + U₁
Using the model above show that the maximum likelihood estimator for the variance, var
(uX21, X3, B4X4), is biased (be sure to comment of the nature of the bias).
Transcribed Image Text:Consider the following regression model: Y₁ =B₁ + B₂X₂ + B3X31+ B4X41 + U₁ Using the model above show that the maximum likelihood estimator for the variance, var (uX21, X3, B4X4), is biased (be sure to comment of the nature of the bias).
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