Nonparametric Regression -m(x) is a general function that relates x to y. This specification includes the linear regression model as a special case. -Now we must estimate a function rather than just two parameters. -Nonparametric: No parameters.

Nonparametric Regression There are a variety of techniques for estimating these functions. One popular method is the local polynomial regression estimator: This seems rather complicated?

Nonparametric Regression It turns out that this “intuitive method” is a special case of the general procedure: We can make improvements by estimating the function over a fine grid and assigning weights to the data points within the shaded region.