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Question 3 Consider the linear function yi= Bo + Bixi + u₁. Suppose that the following results were obtained from a samp
Posted: Thu May 26, 2022 8:01 am
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- Question 3 Consider The Linear Function Yi Bo Bixi U Suppose That The Following Results Were Obtained From A Samp 1 (125.12 KiB) Viewed 14 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. (ii) Estimate the variance of error term, &, and Var (B₁). [Hint: See eq. (2.61).]