What is meant by population regression function and sample regression function?

A population regression function is a linear function, which hypothesizes a theoretical relationship between a dependent variable and a set of independent or explanatory variables at a population level. A stochastic error terms is present in the regression model as well.

What is the difference between a sample regression line and population regression line?

The population regression line is the least-squares regression line (line of best fit) for ALL of the data, whereas the sample regression line is the line for the ESTIMATED data.

What is population regression function in econometrics?

THE CONCEPT OF POPULATION REGRESSION. FUNІCTION (PRF) E(Y | Xi) = f (Xi) is known as conditional expectation function(CEF) or population regression function (PRF) or population regression (PR) for short. In simple terms, it tells how the mean or average of response of Y varies with X.

What is the population regression equation?

Linear regression attempts to model the relationship between two variables by fitting a linear equation to observed data. The least-squares regression line y = b0 + b1x is an estimate of the true population regression line, y = 0 + 1x.

Which of the following statements is true concerning the population regression function PRF and sample regression function SRF )?

Which of the following statements is true concerning the population regression function (PRF) and sample regression function (SRF)? The PRF is a description of the process thought to be generating the data. Correct! The PRF is the true population model for the relationship between the variables x and y.

What is the difference between population regression function PRF and sample regression function SRF?

Explanation: Population regression function (PRF) is the locus of the conditional mean of variable Y (dependent variable) for the fixed variable X (independent variable). Sample regression function (SRF) shows the estimated relation between explanatory or independent variable X and dependent variable Y.

What is the relationship between regression and correlation coefficients?

Correlation coefficient indicates the extent to which two variables move together. Regression indicates the impact of a change of unit on the estimated variable ( y) in the known variable (x). To find a numerical value expressing the relationship between variables.

What is the major difference between population regression function PRF and sample regression function SRF )?

Answer: Population regression function(PRF) is the locus of the conditional mean of variable Y (dependent variable) for the fixed variable X (independent variable). Sample regression function(SRF) shows the estimated relation between explanatory or independent variable X and dependent variable Y.

What is B1 and B2 econometrics?

(2.1), B1 and B2 are called the parameters, also known as the regression coefficients. B1 is also known as the intercept (coefficient) and B2 as the slope (coefficient). The slope coefficient measures the rate of change in the (conditional) mean value of Y per unit change in X.

Is regression and correlation the same?

The main difference in correlation vs regression is that the measures of the degree of a relationship between two variables; let them be x and y. Here, correlation is for the measurement of degree, whereas regression is a parameter to determine how one variable affects another.