### 21.2 Estimations by yourself

With the help of this graphic, you should be able to see how the adjustment of the straight line is related to the estimation parameters. To do this, you will first see a line running through the points D and E that can be freely modified. You can also move the line with the help of the mouse. The corresponding values of the suspension points ($\alpha$) and the slope ($\beta$) are being displayed.

The data cloud was generated based on a randomly selected linear relation. Try to fit the straight line as well as possible into the data cloud. With the buttons „Show estimate“and „Show true model “you can make the respective graphs and parameter values visible. How good are you?

The table below shows you the true value of the parameters, the values estimated using least-squares regression and the values you set.

wahr geschätzt selbst eingestellt
α
β

When you reload the page, the parameters will be randomly re-selected.

(c) by Christian Bauer
Prof. Dr. Christian Bauer
Chair of monetary economics
Trier University
D-54296 Trier
Tel.: +49 (0)651/201-2743
E-mail: Bauer@uni-trier.de
URL: https://www.cbauer.de