Show that β 2 of Eq. (11.3.8) can also be expressed as and var (β 2 )

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Show that βˆ—2of Eq. (11.3.8) can also be expressed as

Σwyfr s Σν. wiy}x β5 Σwx?


and var (βˆ—2) given in Eq. (11.3.9) can also be expressed as

var (B5) = 2 Σwx


where yˆ—i = Yi €“ YÌ…ˆ— and xˆ—i = Xi €“ XÌ…ˆ— represent deviations from the weighted means YÌ…ˆ—and XÌ…ˆ— defined as

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Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

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