Exercise

# Exercise 8 - Derive Expected Value

We modelled the observed data \(Y_{ij}\) as:

$$Y_{ij} = d + b_i + \varepsilon_{ij}$$

On the right side of this model, only \(\varepsilon_{ij}\) is a random variable. The other two values are constants.

What is the expected value of \(Y_{1j}\)?

Instructions

### Possible answers

\(d + b_1\)

\(b_1 + \varepsilon_{ij}\)

\(d\)

\(d + b_1 + \varepsilon_{ij}\)