Suppose that the classical regression model applies but that the true value of the constant is zero.
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Suppose that the classical regression model applies but that the true value of the constant is zero. Compare the variance of the least squares slope estimator computed without a constant term with that of the estimator computed with an unnecessary constant term.
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The OLS estimator fit without a constant term is b x y x x Assuming that the constant term is i...View the full answer
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