View Gujarati 06.02
Category:Gujarati -> Chapter 06
Question:
06.02 What is the difference between a stochastic population regression function (PRF) and a stochastic sample regression function (SRF)?
Answer:
06.02
A stochastic SRF tells how Yi in a randomly drawn sample from a Y population are related to the explanatory variables and the residuals ei. A stochastic PRF tells how the individual Yi are related to the explanatory variables and the stochastic error term ui in the whole population.
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