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Explanatory value X, Response Value Y.
1. Estimate c and b using OLS method of linear regression.eY=cXb
where c,b are unknown constants to be estimated. Suppose our observations of (xi,yi) has
multiplicative error terms, so that:
eyi=cxibei where iN(0,2) is a noise term. The below table is our dataset.
Predict y0 given x0=3.5.

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  • 1. Explanatory value X, Response Value Y. 1. Estimate c and b using OLS method of linear regression.eY=cXb where c,b are unknown constants to be estimated. Suppose our observations of (xi,yi) has multiplicative error terms, so that: eyi=cxibei where iN(0,2) is a noise term. The below table is our dataset. Predict y0 given x0=3.5.