Ratio estimator: Difference between revisions

Content deleted Content added
DrMicro (talk | contribs)
DrMicro (talk | contribs)
Line 104:
 
where ''m''<sub>x</sub> is the mean of the ''x'' variate, ''s''<sub>x</sub><sup>2</sup> and ''s''<sub>y</sub><sup>2</sup> are the sample variances of the ''x'' and ''y'' variates respectively and ''ρ'' is the sample correlation between the ''x'' and ''y'' variates.
 
==Ordinary least squares regression==
 
If a linear relationship between the ''x'' and ''y'' variates exists and the [[regression]] equation passes through the origin then the estimated variance of the regression equation is always less than that of the ratio estimator. The precise relationship between the variances depends on the linearity of the relationship between the ''x'' and ''y'' variates: when the relationship is other than linear the ratio estimate may have a lower variance than that estimated by regression.
 
==Uses==