week

1
2
3
4
5
6
7
8
9
10
sum
Mean
Variance
S.d.
Cov

TR ($000)
Variance i
Cov(tr, p) i Cov(tr, a) i y*p
123.1
10.4329
-0.33269
2.584
124.3
19.6249
0.56261
-7.531
89.3
934.5249
10.79121
-379.068
141.3
459.2449
-7.35049
47.146
112.8
49.9849
1.93011
57.267
120.1
0.0529
-0.01909
-0.529
107.4
155.5009
-4.32709
41.151
128.6
76.2129
0.67221
33.174
124.6
22.3729
1.26291
-11.352
127.2
53.7289
2.47021
-10.262
1198.7
1781.681
5.6599
-227.42
119.87
178.1681
13.34796239
0.56599
-22.742

236.352
267.245
149.131
237.384
197.4
232.994
254.538
270.06
285.334
300.192
2430.63

ad hoc estimator
for b1 and b2
OLS Estimator
Working with the Least squares analysis
sum (yp)
sumy * sump sumy
p^2
(sumP)^2
2430.63
24249.701
1198.7
41.5869
409.2529
given tr = b1+b2P+e
b1
20641.0439
b2
42418.0977

Summary of the levels to econometrics: 1. start with economic model, try to explain the random variables, e.g.
prices. These have
distributions, so we can use sample moments to expalin these. 2. use estimators to determine the relationship
between dependent and independent
variables. depending on the nature of the model we here use MLE or OLS E. etc. we can further test the nature
this estimator etc.

p^2

P($)
3.6864
4.6225
2.7889
2.8224
3.0625
3.7636
5.6169
4.41
5.2441
5.5696
41.5869

1.92
2.15
1.67
1.68
1.75
1.94
2.37
2.1
2.29
2.36
20.23
2.023

-31.359223
58.447011
n(sump^2)
415.869

xplain the random variables, e.g. tr, or

ors to determine the relationship

c. we can further test the nature of

var(p) i
Cov (p,a) i A($000)
var(a) i
tr*
0.010609
-0.0824
12.4
0.64
0.016129
-0.2159
9.9
2.89
0.124609
-4.3772
24
153.76
0.117649
-0.7546
13.8
4.84
0.074529
2.2113
3.5
65.61
0.006889
0.1909
9.3
5.29
0.120409
-1.1451
8.3
10.89
0.005929
0.2926
15.4
14.44
0.071289
-0.6408
9.2
5.76
0.113569
-0.4718
10.2
1.96
0.66161
-4.993
116
266.08
11.6
0.066161
26.608
0.25721781
5.15829429
-0.4993

3.23

Q: How good is this ad-hoc e

Q: How good is this ad-hoc estimator?