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Denotes square root and is read as the square root of. Rarely used in modern mathematics without a horizontal bar delimiting the width of its argument (see the next item). For example, √2. √ (radical symbol) 1. Denotes square root and is read as the square root of. For example, +. 2.
Robert Hall was the first to derive the effects of rational expectations for consumption. His theory states that if Milton Friedman’s permanent income hypothesis is correct, which in short says current income should be viewed as the sum of permanent income and transitory income and that consumption depends primarily on permanent income, and if consumers have rational expectations, then any ...
Since the data in this context is defined to be (x, y) pairs for every observation, the mean response at a given value of x, say x d, is an estimate of the mean of the y values in the population at the x value of x d, that is ^ ^. The variance of the mean response is given by: [11]
Wire-grid Cobb–Douglas production surface with isoquants A two-input Cobb–Douglas production function with isoquants. In economics and econometrics, the Cobb–Douglas production function is a particular functional form of the production function, widely used to represent the technological relationship between the amounts of two or more inputs (particularly physical capital and labor) and ...
The general regression model with n observations and k explanators, the first of which is a constant unit vector whose coefficient is the regression intercept, is = + where y is an n × 1 vector of dependent variable observations, each column of the n × k matrix X is a vector of observations on one of the k explanators, is a k × 1 vector of true coefficients, and e is an n× 1 vector of the ...
This means that the sum of two independent normally distributed random variables is normal, with its mean being the sum of the two means, and its variance being the sum of the two variances (i.e., the square of the standard deviation is the sum of the squares of the standard deviations). [1]
Suppose the mean level of cholesterol before and after the prescription of a statin falls from 5.6 mmol/L at baseline to 3.4 mmol/L at one month and to 3.7 mmol/L at two months. Given sufficient power, an ANOVA (analysis of variance) would most likely find a significant fall at one and two months, but the fall is not linear.
In economics, gains from trade are the net benefits to economic agents from being allowed an increase in voluntary trading with each other. In technical terms, they are the increase of consumer surplus [ 1 ] plus producer surplus [ 2 ] from lower tariffs [ 3 ] or otherwise liberalizing trade .