C caschas New member Joined Jun 18, 2026 Messages 0 Reaction score 0 May 29, 2016 #1 Hi all, I wonder how in the question number 3 they bring out this guy: Var (ε) = 0.0770 O_O Thanks and courage,
Hi all, I wonder how in the question number 3 they bring out this guy: Var (ε) = 0.0770 O_O Thanks and courage,
M MrSmart New member Joined Jun 18, 2026 Messages 0 Reaction score 0 May 29, 2016 #2 It’s part of the variance formula, it’s the variance of the error term for a regression.
J jpsi1 New member Joined Jun 18, 2026 Messages 0 Reaction score 0 May 30, 2016 #3 Var(M) = Var(F1)*b1^2 + Var(F2)*b2^2 + 2*b1*b2*Cov(F1,F2) + Var(e) 0.2704 = 0.0784*1.02^2 + 0.1024*1.045^2 + 0 + Var(e) ==> Var(e) = 0.077
Var(M) = Var(F1)*b1^2 + Var(F2)*b2^2 + 2*b1*b2*Cov(F1,F2) + Var(e) 0.2704 = 0.0784*1.02^2 + 0.1024*1.045^2 + 0 + Var(e) ==> Var(e) = 0.077