4.13 Suppose that Yi = b0 + b1Xi + kui, where k is a nonzero constant and...

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4.13 Suppose that Yi = b0 + b1Xi + kui, where k is a nonzero constant and

(Yi, Xi) satisfy the three least squares assumptions. Show that the large sample variance of b n

1 is given by s 2

b1 = k2 1n var3(Xi - mX)ui4 3var(Xi)24 . [Hint: This equation is the variance given in Equation (4.21) multiplied by k2.]

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Introduction To Econometrics

ISBN: 9781292071367

3rd Global Edition

Authors: James Stock, Mark Watson

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Question Posted: Oct 26, 2024 12:00 AM

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4.13 Suppose that Yi = b0 + b1Xi + kui, where k is a nonzero constant and...

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Introduction To Econometrics

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