• Y = Bo + B,X1 + B2X2 + U • E(YX1, X2) = 80 + 8,X: + 82X2 (3) (4) Question: Using the property that E(U|X1, X2) = 0, sh
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• Y = Bo + B,X1 + B2X2 + U • E(YX1, X2) = 80 + 8,X: + 82X2 (3) (4) Question: Using the property that E(U|X1, X2) = 0, sh
Question: Using the property that E(U|X1, X2) = 0, show that equation (4) is the PRF associated with equation (3) and give definitions for 80, 81 and 82 in terms of the population parameters.
• Y = Bo + B,X1 + B2X2 + U • E(YX1, X2) = 80 + 8,X: + 82X2 (3) (4)