1 / 5

OLS in The Linear Model with Two Variables Example: Consumption Function

OLS in The Linear Model with Two Variables Example: Consumption Function. Applied Econometrics Walter Sosa-Escudero. "positive“ error. "negative“ error. Least squares: choose the line that makes the sum of squared errors as small as possible. Optimal: q= 2813.3-1577.58 p. q=1800-700 p

etta
Download Presentation

OLS in The Linear Model with Two Variables Example: Consumption Function

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. OLS in The Linear Model with Two VariablesExample: Consumption Function Applied Econometrics Walter Sosa-Escudero

  2. "positive“ error "negative“ error

  3. Least squares: choose the line that makes the sum of squared errors as small as possible Optimal: q= 2813.3-1577.58 p q=1800-700 p Not optimal!

More Related