12. The components of the OLS variances Under assumptions MLR.1 through MLR.5, conditional on the sample values of the independent variables, the variance of B, under OLS is: Var () where o - the variance of the error term SST, - the total sample variation of z, RỆ - the R-squared from a regression of z, on all of the other explanatory variables, along with an intercept parameter The variance of By ▼ as R increases. decreases For the given mode e following would lead to a reduction of the sampling variance of 37 increases O Adding al variable that is equal to 5 + z, O using the same data set with the same number of observations O Adding irrelevant explanatory variables to the model that are correlated with zy O Choosing an explanatory variable za that is uncorrelated with the other explanatory variables in the model
12. The components of the OLS variances Under assumptions MLR.1 through MLR.5, conditional on the sample values of the independent variables, the variance of B, under OLS is: Var () where o - the variance of the error term SST, - the total sample variation of z, RỆ - the R-squared from a regression of z, on all of the other explanatory variables, along with an intercept parameter The variance of By ▼ as R increases. decreases For the given mode e following would lead to a reduction of the sampling variance of 37 increases O Adding al variable that is equal to 5 + z, O using the same data set with the same number of observations O Adding irrelevant explanatory variables to the model that are correlated with zy O Choosing an explanatory variable za that is uncorrelated with the other explanatory variables in the model
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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