Although this post is reserved for Amit sir's reply.....but I eagerly wanted to try this one.....I am getting alpha hat as 3 please confirm if it is right or wrong....
Although this post is reserved for Amit sir's reply.....but I eagerly wanted to try this one.....I am getting alpha hat as 3 please confirm if it is right or wrong....
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OK...I proceeded this way..... I first computed the mean of X which turns out to 0 and mean of Y which turns out to 3
Since sample regression line passes through sample means therefore
Mean of y= alpha cap + beta cap*mean of x
3= alpha cap + beta cap*0
Alpha cap=3...
I am also getting alpha as 3.
For beta, i think answer should be not enough info is provided . because we can't find out the individual values of y from whatever is given.
There is a mistake in your analysis. We are not given E(Y|X=1) and E(Y|X=-1) . These are population averages. We are only given sample averages. If the observations are (-1, y(1)), (-1, y(2)), (-1, y(3)), (1, y(4)), (1, y(5)), (1, y(6)), we only know that [y(1) + y(2) + y(3)]/3 = 2 and [y(4) + y(5) + y(6)]/3 = 4.
Note that x-bar = 0. Thus, least square estimate of the slope coefficient is:
b = [x(1)y(1) + x(2)y(2) + x(3)y(3) + x(4)y(4) + x(5)y(5) + x(6)y(6)]/ [x(1)^2 + x(2)^2 + x(3)^2 + x(4)^2 + x(5)^2 + x(6)^2]
= [-y(1) -y(2) -y(3) + y(4) + y(5) + y(6)]/ [6]
= [-6 + 12]/6
= 1
The estimate of the intercept coefficient is
a = (y-bar) - b (x-bar) = y-bar = [y(1) + y(2) + y(3) + y(4) + y(5) + y(6)]/6 = [6 + 12]/6 = 3.
There is a mistake in your analysis. We are not given E(Y|X=1) and E(Y|X=-1) . These are population averages. We are only given sample averages. If the observations are (-1, y(1)), (-1, y(2)), (-1, y(3)), (1, y(4)), (1, y(5)), (1, y(6)), we only know that y(1) + y(2) + y(3)/3 = 2 and y(4) + y(5) + y(6)/3 = 4.
Note that x-bar = 0. Thus, least square estimate of the slope coefficient is:
b = [x(1)y(1) + x(2)y(2) + x(3)y(3) + x(4)y(4) + x(5)y(5) + x(6)y(6)]/ [x(1)^2 + x(2)^2 + x(3)^2 + x(4)^2 + x(5)^2 + x(6)^2]
= [-y(1) -y(2) -y(3) + y(4) + y(5) + y(6)]/ [6]
= [-6 + 12]/6
= 1
The intercept coefficient is
a = (y-bar) - b (x-bar) = y-bar = [y(1) + y(2) + y(3) + y(4) + y(5) + y(6)]/6 = [6 + 12]/6 = 3.
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