7.9 Consider the regression model Yi = b0 + b1X1i + b2X2i + ui. Use Approach #2...

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7.9 Consider the regression model Yi = b0 + b1X1i + b2X2i + ui. Use Approach

#2 from Section 7.3 to transform the regression so that you can use a t-statistic to test

a. b1 = b2.

b. b1 + 2b2 = 0.

c. b1 + b2 = 1. (Hint: You must redefine the dependent variable in the regression.)

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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 01:00 AM

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7.9 Consider the regression model Yi = b0 + b1X1i + b2X2i + ui. Use Approach #2 from Section 7.3 to transform the regression so that you can use a t-statistic to test a. b1 = b2. b. b1 + 2b2 = 0. c....
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7.9 Consider the regression model Yi = b0 + b1X1i + b2X2i + ui. Use Approach #2...

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Introduction To Econometrics

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