Answer Happy

Question 3 Consider the linear function y; -= 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. (v) Based on question (iv), when ₂ <0 and R² = 0.7 from regressing y on x and z, what is the t-statistic for the coefficient on z? Can we say that "z is statistically significant?"