Skip to content
Q115Section III (Statistics)115 of 145

Positive errors with mean θ\theta: the slope is still unbiased, the intercept absorbs θ\theta

Consider Yi=α+βXi+εiY_i=\alpha+\beta X_i+\varepsilon_i with εi∼f(ε)=1Γ(θ)e−εεθ−1\varepsilon_i\sim f(\varepsilon)=\frac1{\Gamma(\theta)}e^{-\varepsilon}\varepsilon^{\theta-1}, ε>0\varepsilon>0. Then which statement is true?

Options

Pick an option to check your answer.