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The Simple Regression Model

The Simple Regression Model. y = b 0 + b 1 x + u. Some Terminology. In the simple linear regression model, where y = b 0 + b 1 x + u , we typically refer to y as the Dependent Variable, or Left-Hand Side Variable, or Explained Variable, or Regressand.

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Lecture 3: The Simple Regression Model

Lecture 3: The Simple Regression Model. Wooldridge, Ch. 2. The Simple Regression Model. y = b 0 + b 1 x + u Note: 1. Now using y , x for random variables and realisations (data). 2.Also called the two-variable regression model. Some Terminology.

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1.61k views • 40 slides

The Simple Regression Model

The Simple Regression Model. y = b 0 + b 1 x + u. Introduction. Most applied econometric analysis begins with the premise that Y and X are two variables, representing some population, and we are interested in explaining Y in terms of X. Or, how Y varies with changes in X.

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Associated error terms - PowerPoint PPT Presentation

The Simple Regression Model

Lecture 3: The Simple Regression Model

The Simple Regression Model