confidence bands for the sum of two rvs (from pool)
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confidence bands for the sum of two rvs (from pool)
For EViews 9 -- Trying to calculate confidence bands for a forecast of the weighted average of wages across two states, based on a pooled estimates for fifty states. EViews provides standard errors and confidence bands for a specified confidence level for the individual rvs. Is there a way to obtain the necessary information -- sample sizes, the variances and covariance of the rvs -- to calculate the standard errors for the weighted average?
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startz
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Re: confidence bands for the sum of two rvs (from pool)
The variance of w_1*x + w_2*y is w_1^2*var(x) +w_2^2*var(y) + 2*w_1*w_2*cov(x,y)
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