Learning objectives: Use sample data to estimate quantiles, including the median. Estimate the mean of two variables and apply the CLT. Estimate the covariance and correlation between two random variables. Explain how coskewness and cokurtosis are related to skewness and kurtosis.
I understand that the assumption that the sampling distribution of OLS estimators b0 and b1 is asymptotically normal is a key property. However I'm a bit stuck as to why that is. I assume the magic CLT comes into play here, but I guess there are stil grey areas for me.
When we apply the...
I was reading about the Central Limit Theorem today, in the study notes for Miller chapter 4 (p79 specifically), and I realized that I am unclear about the following:
(I) we indicate that the variance of each random variable is σ^2/n. As we have shown in the preceding ochapter, this is...
Apologies if this is a basic question but when constructing a confidence interval do you only ever use the critical/lookup T values? I also have the Schweser notes which suggests sometimes you'd use the Z-statistic as opposed to the T statistic: