Question: The model is Y X0 11 X0 22 e with E[Xe] 0 and X2 scalar. Describe how to test H0 : 2

The model is Y Æ X0 1¯1 Å X0 2¯2 Åe with E[Xe] Æ 0 and X2 scalar. Describe how to test H0 : ¯2 Æ 0 against H1 : ¯2 6Æ 0 using the nonparametric bootstrap.

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