04_OrLeSq

What is the objective function of OLS?

• Sum of squared residuals

• Sum of absolute residuals

• Cross-products of residuals and X variables

• Average of squared residuals

Choose a correct statement. According to the notation in our course:

• b is the estimate, beta is the estimator, beta_hat is true population parameter

• b is the estimator, beta is the estimate, beta_hat is true population parameter

• b is the true population parameter, beta is the estimator, beta_hat is the estimate

• b is the estimator, beta is the true population parameter, beta_hat is the estimate

Solving the minimization problem of OLS, we take the derivative of the objective function with respect to:

• X

• y

• residuals

• b

Can you estimate a model with 15 independent variables having 14 observations in your sample using OLS?

• Yes

• No

How can you transform matrices into data format in Stata?

• mat matrixname

• todata matrixname

• svmat matrixname

• gen variablename = matrixname