National open university of nigeria introduction to econometrics I eco 355

 
6.0 
TUTOR MARKED ASSESSMENT EXERCISE 
Discuss extensively the maximum likelihood estimation of two variable regression 
model. 
 
7.0 
REFERENCES/FURTHER READINGS 
Gujarat, D. N. (2007) Basic Econometrics, 4
th
Edition, tata Mcgraw – Hill publishing 
company limited, New Delhi. 
Hall, S. G., & Asterion, D. (2011) Applied Econometrics, 2
nd
Edition, Palgrave 
Macmillian, New York city, USA. 
 
 
 
 
 
 
 
 

---

86 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UNIT 4
CONFIDENCE INTERVALS FOR REGRESSION COEFFICIENTS 
 AND 
 
 
CONTENTS 
 
1.0
Introduction 
2.0 Objectives 
3.0 Main content 
3.1. Confidence intervals for regression Coefficients 
3.2. Confidence interval for 
4.0 
Conclusion 
5.0 
Summary 
2.0
Tutor-Marked Assignment 
7.0. 
References/Further Readings 
 
 
1.0.
 
 INTRODUCTION 
Interval estimates can be contrasted with point estimates. A point estimate is a single 
value given as the estimate of a population parameter that is of interest, for example the 
mean of some quantity. An interval estimate specifies instead a range within which the 
parameter is estimated to lie. Confidence intervals are commonly reported in tables or 

---

87 
graphs along with point estimates of the same parameters, to show the reliability of the 
estimates. 
For example, a confidence interval can be used to describe how reliable survey results 
are. In a poll of election voting-intentions, the result might be that 40% of respondents 
intend to vote for a certain party. A 99% confidence interval for the proportion in the 
whole population having the same intention on the survey might be 30% to 50%. From 
the same data one may calculate a 90% confidence interval, which in this case might be 
37% to 43%. A major factor determining the length of a confidence interval is the size of 
the sample used in the estimation procedure, for example the number of people taking