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Discuss the differences in a regression model between making the random error being multiplicative and making...

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Basic Math

Discuss the differences in a regression model between making therandom error being multiplicative and making the random error beingadditive regarding how you approach estimation of the modelcoefficient(s), how you apply linearization for estimating themodel coefficient(s), and how you obtain starting values forestimation of the model coefficient(s).

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3.7 Ratings (649 Votes)
The additive error model is defined asYib0 b1Xi eiwhere i is the index of a datum Xi is the reference dataassumed error free Yi is a measurement b0 is the offsetb1is a scale parameter to represent the differences in thedynamic ranges between the reference data and the measurementsand ei is an instance of the random error which has z ero mean andvariance of    See Answer
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