9.6 Suppose that n = 50, i.i.d. observations for (Yi, Xi) yield the following regression results: Another
Question:
9.6 Suppose that n = 50, i.i.d. observations for (Yi, Xi) yield the following regression results:
Another researcher is interested in the same regression, but makes an error when entering the data into a regression program: The researcher enters each observation twice, ending up with 100 observations (with observation 1 entered twice, observation 2 entered twice and so forth).
a. Using these 100 observations, what results will be produced by the regression program? (Hint: Write the “incorrect” values of the sample means, variances, and covariances of Y and X as functions of the “correct”
values. Use these to determine the regression statistics.)
b. Which (if any) of the internal validity conditions are violated?
Step by Step Answer:
Introduction To Econometrics
ISBN: 9781292071367
3rd Global Edition
Authors: James Stock, Mark Watson