This was in yesterday's CT3 paper. I do not remember the wordings of th questions properly. But I guess this is what they were asking. e_i, i = 1,2,3,.... are normally distributed with mean 0 and variance 1. alpha is an unknown parameter. The following two equations were given - y_1 = alpha + e_i y_2 = 3*alpha + e_i What is the regression model?
I am surprised no one has replied.Now that the question paper is available in IAI website somebody should come forward. I request Mr Jhon Lee to look at the question.
To be honest it is not clear to me. Since α is a parameter then perhaps the value infront is the x value? In which case it would be yi = αxi + ei.
John, I would request you to look at this question from the IAI website and tell us what you think the solution should be. I still havent gotten anywhere with this question. Thanks.
Regression model is : Yi = alpha*Xi + ei solve : Sum((ei)^2) = (.6 - *alpha)^2 + (1.8 - 3*alpha)^2 by least squares method.
