Standard errors The formula for the standard error of the estimate va (2)=(dSa) Where it come from?-Delta method Delta method the asymptotic variance of f(x)is f'(x)'var(x) S/T is the variance matrix of the moment 8T Is [Og /ab] Then the delta method gives ab ab gz T ogr agr tStandard errors • The formula for the standard error of the estimate, • Where it come from? –”Delta method” • Delta method: the asymptotic variance of f(x) is • S/T is the variance matrix of the moment . • is • Then the delta method gives 1 1 2 ( ' ) 1 ) ˆ var( − − = d S d T b '( ) var( ) 2 f x x T g −1 d T T g b g b ∂ ∂ ∂ ∂ = −1 [ / ] 1 1 2 1 var( ) 1 ) ˆ var( − − = ∂ ∂ ∂ ∂ = d Sd g T b g g b T b T T T