Question 3 Consider the linear function yi = Bo + Bixi + u₁. Suppose that the following results were obtained from a sam

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Question 3 Consider the linear function yi = Bo + Bixi + u₁. Suppose that the following results were obtained from a sam

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Question 3 Consider The Linear Function Yi Bo Bixi U Suppose That The Following Results Were Obtained From A Sam 1
Question 3 Consider The Linear Function Yi Bo Bixi U Suppose That The Following Results Were Obtained From A Sam 1 (138.91 KiB) Viewed 20 times
Question 3 Consider the linear function yi = Bo + Bixi + u₁. Suppose that the following results were obtained from a sample with 12 observations: • Sample average of y = 10 ● Sample average of x = 10 ● Sample variance of y = 25 ● Sample variance of x = 40 ● Sample covariance of y and x = 20. Suppose that the CLM Assumptions hold here and answer the following questions. (iii) Test the null hypothesis that x has no effect on y against the alternative that x has effect on y. What is the t-statistic? Is x statistically significant?
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