Mathematics, 03.03.2021 23:00 corbinwilliams
Suppose that you want to estimate the relationship between people's weight (W) and the number of times they eat out in a month (EO):
,
where is the intercept of the population regression line; is the slope of the population regression line; is the error term; and the subscript i runs over observations, i1, ... , n.
For this, you collect data from a random sample of people 250. After analyzing the data, you determine that the covariance between people's weight and the number of times they eat out in a month is 4.85 and the variance of the number of times people eat out in a month is 3.59. You also find that the mean weight of people in the sample is 62.36 kg and the mean number of times people eat out in a month is 2.46 .
The OLS estimator of the slope is
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