Hello I have a worked example where I have to maximize a function with an inequality constraint. The problem is worked out below.
https://zgqqmw.sn2.livefilestore.com/y1pLc13HVWpA9dATZEzikySeSMBN2hn1mJCw71rJ5vvUJcr9W7KBPFkOz7HQEppa6EPbLi5yyAwDagh3ezF_7eyVL6tBK7q6ise/maxProbem.png?psid=1
I...
Hey. Iam trying to understand how specification of the equation can lead to hetroscedasticity. This is stright out of my notes.
Yt=B1+B2x2t+B3x3t+...+BkXkt+\gamma\varpi+ε^{}_{t}
Yt=B1+B2x2t+B3x3t+...+Bkxkt+ε^{*}_{t}
where
ε^{*}_{t} = εt + \gamma\varpit
Since Var(εt) =...
Can someone explain to me how
Cov(x,y)=[X-E(x))(Y-E(y)]
and this would equal 0 under the normal OLS assumption.
I know how to calculate the covariance, but X here is a matrix. So I don't understand the logic of this formula...
Homework Statement
I have to determine if [e][/x] is a convex function. If it is then show proof. I know its a convex function by looking at the graph, Iam stuck at prooving it mathematically though.
Homework Equations
The function is f(x)=e^x.
The Attempt at a Solution
I am...