Professor E. Z. Stuff has decided that the least squares estimator is too much trouble. Noting that two points determine a line, Dr. Stuff decides to be a little more rigorous and use yj value and yk value in the sample and draws a regression based on the algorithm below, calling the slope of this line the EZ estimator of β1 in the simple regression model. Algebraically, if the y values are ordered, then one y-value and the corresponding x value is (yj, xj) and the second y- value with the corresponding x-value is (yk, xk) the EZ estimation rule is

b(EZ) = (yj - yk)/(xj - xk)

Assuming that all the assumptions of the simple regression model hold:
a. Show that bez is a "linear" estimator
b. Show that bez is an unbiased estimator

answer: a and c are correct

step-by-step explanation:

the +5 is the vertical translation

the added negative symbol in front is the reflection over the y-axis

answer: hey there,

the answer you are looking for is a..

hope this you!

answer: c, the green line

step-by-step explanation:

there is no black line, eliminate b.

simple interest implies periodic payments, but the red line shows no payments, eliminate d.

simple interest has equal payments. if paid say every day, the graph is about a straight line (actually a stairstep).

the yellow line is not straight, eliminate a.

check: the green line is straight, answer is c.

simple interest with positive interest rate gives a straight line sloping up to the right. green line:

g(t) = $100 + ($200-$100) ÷ (20 years) × (t years)

= $100 + (4%/year) × ($100)(t years)

incidentally, the yellow line curving upward represents continuously compounded interest

y = $100 × 2^(t years / (14 assuming the yellow line hits $200 at 14 years. 2^0 is 1, so y(0) = $100; 2^(14/14) is 2, so y(14) = $200.