This is a draft cheat sheet. It is a work in progress and is not finished yet.
Multi Linear Regression
Example:Education VS Salary |
Claim |
wagei = B 0 + B1educi + B 2experi + ui |
Yi = 0 + B1*X1i + ... + B kXki + ui |
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Key assumption: E[ui |X1i ...Xki] = 0
assume that all other factors are uncorrelated with X1...Xk . |
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Bj = dY /dXj, j=1...k |
holding all other factors fixed. |
OLSEs for MLR
min b0;b1;b2 Xn i=1 (Yi b0 b1X1i b2X2i )2 = SSR |
OLSEs for MLR
min b0;b1;b2 Xn i=1 (Yi b0 b1X1i b2X2i )2 = SSR |
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