Ekonometrika Al Muizzuddin F

The key concept underlying regression analysis is the concept of the conditional expectation function (CEF), or population regression function (PRF) Our objective in regression analysis is to find out how the average value of the dependent variable (or regressand) varies with the given value of the explanatory variable (or regressor). 2

This book largely deals with linear PRFs, that is, regressions that are linear in the parameters. They may or may not be linear in the regressand or the regressors. For empirical purposes, it is the stochastic PRF that matters. The stochastic disturbance term ui plays a critical role in estimating the PRF. 3

The PRF is an idealized concept, since in practice one rarely has access to the entire population of interest. Usually, one has a sample of observations from the population. Therefore, one uses the stochastic sample regression function (SRF) to estimate the PRF 4

The method of ordinary least squares is attributed to Carl Friedrich Gauss, a German mathematician. Under certain assumptions the method of least squares has some very attractive statistical properties that have made it one of the most powerful and popular methods of regression analysis. 5

FIGURE - A 6

The Least-squares procedure obtains estimates of the linear equation coefficients b 0 and b 1, in the model. by minimizing the sum of the squared residuals ei. 7

This results in a procedure stated as 8

The slope coefficient estimator is And the constant or intercept indicator is 9

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TUGAS KE-2 15 Ditulis tangan pada kertas folio garis Dikumpulkan pada saat UTS

Perhatikan data berikut 16 1.Hitung nilai koefisien b0 dan b1 2.Tulis persamaan regresinya 1.Hitung nilai koefisien b0 dan b1 2.Tulis persamaan regresinya Notes :