by Solutionshala | Jul 3, 2021 | Econometrics
What is Heteroscedasticity? One of the crucial assumption of linear regression models is that the residual or error term needs to have constant variance and this assumption is known as Homoscedasticity. However, when the residual variance is not constant we call it a...
by Solutionshala | Jan 19, 2020 | Econometrics
Once the estimation of a regression model is complete, we would like to know how good the fit of our estimated model is. In other words we would like to know how well the estimated line fits the data / sample observations. That is when the F-statistic and R-squared...
by Solutionshala | Nov 3, 2019 | Econometrics
For the estimated coefficients of an econometric model to be most accurate and reliable, there are few properties we need to look for.The following describes the same. Unbiasedness : An estimator is said to be an unbiased estimator if its mean or expected value is...
