Question

Two variables y and x are believed to be related by the following stochastic equation:
Y= Bo + Bix + u
Where u is the usual random disturbance with zero mean and constant variance o? To
check the relations one research takes a sample size of 8 and estimates ß with OLS. A
second researcher takes a different sample size of 8 and also estimates ß with OLS. The
data they used and the results they obtained are as follows:
Researcher I
Researcher II
Y
х
у
Х
mmmm
4.0
4.5
4.5
3.5
4.5
4.5
5.5
5.0
2.0
2.5
2.5
1.5
11.5
10.5
10.5
11.0
1
1
1
1
10
10
10
10
4
4
4
4
Can you explain why the standard error of estimates ß for the first researcher is larger
than the standard error of estimates B for the second researcher?

Answer 1

Answer:

becuse of the formet ...............