-1
votes
0answers
15 views

How to Build a Foresight System? [migrated]

For a research project, I'm asked to find ways to build an economic foresight system. For example, for the production of cheese. We will have data about the market indicators, like price, demand etc. ...
1
vote
1answer
85 views

Why can we assume that the expected value of the error term is zero? [closed]

Why can we assume that the expected value of the error term in a linear regression model is zero? This is with regard to a simple linear regression.
0
votes
1answer
49 views

Statistical inference and t-stats?

I have this linear regression model with an intercept(b0) and 3 variables(b1,b2,b3). Then they drop b2 and b3 and they give a new regression line with a new b0 and b1 and consequently new standard ...
0
votes
1answer
56 views

Statistics - Covariance and variance question

Please fill in the intermediate steps $$\sum_{i=1}^nx_i(x_i-\bar x)=\sum_{i=1}^n(x_i-\bar x)^2$$ and $$\sum_{i=1}^nx_i(y_i-\bar y)=\sum_{i=1}^n(x_i-\bar x)(y_i-\bar y)$$
3
votes
1answer
78 views

Constraining estimated linear regression coefficients over several regressions

I'm trying to run a series of simultaneous linear regressions, and I want to constrain the regression coefficients. For the standard ordinary least squares regression, the specification of the ...
1
vote
1answer
40 views

Cointegration for Price levels Time Series

I don't understand why is the difference between price levels is a stationary process while the time series of price levels themselves is a non-stationary process. For example: ...
0
votes
1answer
1k views

Can someone explain what plim is?

In my Introductory Econometrics class we discussed a concept of "plim" or "probability limit. I'm not sure what this means though and my professor doesn't explain it well at all. Can someone tell me ...