« Material for Lecture 1 on Tuesday 1/4/11 | Main | Homework 1 »

Wednesday, January 05, 2011



First half of the lecture covers:
1.perfect multicollinearity, which makes the OLS collapse(use the method that explainE(XU) does not work)
2.imperfect multicollinearity small data size problem (solution is to enlarge the data)
3. t statistic, intuition of t statistic, degrees of freedom (need to find out in details in other book)


second half of the lecture covers:(need to understand the intuition of F stat)
1.procedures of doing F statistic
a.)estimate unrestricted model. save RSS
b.)estimate restricted model, save RSS(under the null hypt, substitute into the unrestricted model)
c.)form the F-statistic formula
d.)accept or reject

2.give three different more complecated examples of F statistics


I would be lucky if i could be your real student. Thanks you so much teacher for your hard-working. :))

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