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02 Simple Regression Model
02 Simple Regression Model
SEEQ2023
BASIC ECONOMETRIC
PRECISION OR STANDARD ERRORS OF OLS
ESTIMATES
• OLS estimates are function of the sample data.
• Since data likely to change from sample to sample - the
estimates will change.
• We needed some measure of “reliability” or precision of the
estimators and .
• In statistics, the precision of an estimates is measured by its
standard error (se).
STANDARD ERRORS