You are estimating the effect of temperature on ice cream sales using a bivariate OLS regression. You use the estimating equation Sales =B+B₁₂ temperature, + & where i is the recorded day (from i=1 for july 1st to i 0 1 i i=31 for july 31st), temperature is the temperature in Farenheit, and Sales is the total ice cream sales in Chicago in thousands of dollars for that day. You estimate that =10, ß₁=6. 0 You are concerned that is biased since there was a festival that occured during the hottest part of the month, 1 and festivals impact ice cream sales but are not modeled and hence in the error term. You recall that 6 E[B₂] =B₁+cor (x,x) 1 6 E X . You estimate that What is th expected true value of ß? 1 6 6 E X =5 and that cor(x,x) = 0.5
You are estimating the effect of temperature on ice cream sales using a bivariate OLS regression. You use the estimating equation Sales =B+B₁₂ temperature, + & where i is the recorded day (from i=1 for july 1st to i 0 1 i i=31 for july 31st), temperature is the temperature in Farenheit, and Sales is the total ice cream sales in Chicago in thousands of dollars for that day. You estimate that =10, ß₁=6. 0 You are concerned that is biased since there was a festival that occured during the hottest part of the month, 1 and festivals impact ice cream sales but are not modeled and hence in the error term. You recall that 6 E[B₂] =B₁+cor (x,x) 1 6 E X . You estimate that What is th expected true value of ß? 1 6 6 E X =5 and that cor(x,x) = 0.5
Chapter6: Exponential And Logarithmic Functions
Section6.8: Fitting Exponential Models To Data
Problem 3TI: Table 6 shows the population, in thousands, of harbor seals in the Wadden Sea over the years 1997 to...
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![You are estimating the effect of temperature on ice cream sales using a bivariate OLS regression. You use the
estimating equation Sales =B+B temperature, + & where i is the recorded day (from i=1 for july 1st to
i
i
1
i=31 for july 31st), temperature is the temperature in Farenheit, and Sales is the total ice cream sales in Chicago
in thousands of dollars for that day.
You estimate that = 10, ₁
0
1
You are concerned that is biased since there was a festival that occured during the hottest part of the month,
and festivals impact ice cream sales but are not modeled and hence in the error term. You recall that
6
E[B₂] =B₁
E
= 6.
6
X
+ cor(x,x) You estimate that = 5 and that cor (x,x) = 0.5
б
What is th expected true value of ₁?
1
E
6
X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2ddc0d11-139d-4179-848e-9946b62b5a81%2F564db1d6-ee72-432e-ac7b-a2d824acaaa7%2Fjtqvocu_processed.png&w=3840&q=75)
Transcribed Image Text:You are estimating the effect of temperature on ice cream sales using a bivariate OLS regression. You use the
estimating equation Sales =B+B temperature, + & where i is the recorded day (from i=1 for july 1st to
i
i
1
i=31 for july 31st), temperature is the temperature in Farenheit, and Sales is the total ice cream sales in Chicago
in thousands of dollars for that day.
You estimate that = 10, ₁
0
1
You are concerned that is biased since there was a festival that occured during the hottest part of the month,
and festivals impact ice cream sales but are not modeled and hence in the error term. You recall that
6
E[B₂] =B₁
E
= 6.
6
X
+ cor(x,x) You estimate that = 5 and that cor (x,x) = 0.5
б
What is th expected true value of ₁?
1
E
6
X
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