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BA 213: Introductory Econometrics

Assignment 5
Deadline: April 7, 2020
Q19. Prove the following result:
𝑟𝜎𝑦
̂2 =
𝛽
𝜎𝑥
̂2 is independent of the change of
Q20. Prove that the regression coefficient 𝛽
origin but not of scale.
Use this result to obtain the regression equation of Y on X for the following
dataset:
X 21 24 26 27 29 25 25 30

Y 2.8 3.4 3 3.5 3.6 3 2.7 3.7

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