A random sample of size n from a bivariate distribution is denoted by (x_r,y_r),r=1,2,3,...,n.

Rachel Villa

Rachel Villa

Answered question

2022-05-23

A random sample of size n from a bivariate distribution is denoted by ( x r , y r ) , r = 1 , 2 , 3 , . . . , n. Show that if the regression line of y on x passes through the origin of its scatter diagram then
y ¯ r = 1 n x r 2 = x ¯ r = 1 n x r y r
where ( x ¯ , y ¯ ) is the mean point of the sample.

Answer & Explanation

Harper Heath

Harper Heath

Beginner2022-05-24Added 9 answers

Recall that the OLS estimators are
β ^ 0 = Y ¯ n β ^ 1 X ¯ n , β ^ 1 = X i Y i n X ¯ Y ¯ X i 2 n X ¯ 2 ,
because the line passes through the origin, you have that β ^ 0 = 0 = Y ¯ β ^ 1 X ¯ , thus
Y ¯ X ¯ = X i Y i n X ¯ Y ¯ X i 2 n X ¯ 2 ,
or
Y ¯ X i 2 Y ¯ n X ¯ 2 = X ¯ X i Y i n Y ¯ X ¯ 2 ,
hence
Y ¯ X i 2 = X ¯ X i Y i .

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