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Estimation of Standard Errors and Ordinary Least Square (OLS)

Estimation of Standard Errors and Ordinary Least Square (OLS)

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Published by Sangita
Calculate Standard Errors and Ordinary Least Square (OLS)step by step
Calculate Standard Errors and Ordinary Least Square (OLS)step by step

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Published by: Sangita on Aug 30, 2009
Copyright:Attribution Non-commercial

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06/03/2010

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 YXY*YX*XX*Y
N Consumption Income1 70 80 4900 6400 5600 -41 -902 65 100 4225 10000 6500 -46 -703 90 120 8100 14400 10800 -21 -504 95 140 9025 19600 13300 -16 -305 110 160 12100 25600 17600 -1 -106 115 180 13225 32400 20700 4 107 120 200 14400 40000 24000 9 308 140 220 19600 48400 30800 29 509 155 240 24025 57600 37200 44 7010 150 260 22500 67600 39000 39 90
sum1110170013210032200020550000mean11117013210322002055000
Dr. Sangita
Y= b1+ b2x 
r square Y -mean of Y(i.e. =y)X -mean of X(i.e. =x)b2 = sum of xy/sum of x squareb1 = mean of Y -b2* mean of Xcorreln bet Xand Y i.e. r =
correln bet X andestimated Y =
degrees of freedom =
 
square of ysquare of xxyestimated Y
uu*u
1681 8100 3690 65.18 4.82 23.212116 4900 3220 75.36 -10.36 107.4441 2500 1050 85.55 4.45 19.84256 900 480 95.73 -0.73 0.531 100 10 105.91 4.09 16.7416 100 40 116.09 -1.09 1.1981 900 270 126.27 -6.27 39.35841 2500 1450 136.45 3.55 12.571936 4900 3080 146.64 8.36 69.951521 8100 3510 156.82 -6.82 46.49
8890330001680011100337.2788933001680111033.73
i.e. zero
SD of Y =33.340.51
SD of X = 64.23 4125
24.45method 16.49var = 42.160.98
1
method 20.196.490.96var42.16
8
method 36.49SE =Sqrt( Sqr(Y -estmted Y)/n)SE = SD of Y*sqrt(1- r sqre)

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