Estimating error variance in a five-point line fit
Question
Bob fits , with and , by least squares to these five points: , , , , . Give the usual unbiased estimate of .
Short answer
. The fitted line is , leaving residuals (ordered by increasing ). Their squares sum to , and dividing by degrees of freedom gives .
Adapted from QuantQuestions.io; question and answer rewritten by SelfMadeQuant.com.
See the hint and the full worked solution in the question bank (free account).
Open the worked solutionLessons behind this question
- Simple Linear Regression: OLS Estimators and Geometry
- Multiple Linear Regression
- Populations, Samples, and Sampling Distributions
Start with a free lesson: Normal Distribution is part of a free topic. Create a free account, no card needed, to read it in full with worked solutions.
Read it free