Re: Amit Sir Please Help

Posted by vandita24x7 on Apr 14, 2014; 3:37am
URL: http://discussion-forum.276.s1.nabble.com/Amit-Sir-Please-Help-tp7586764p7586827.html

Thanks a lot sir..!

vandita

On 14 Apr 2014 07:57, "Amit Goyal [via Discussion forum]" <[hidden email]> wrote:

Hi Akshay,

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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