=+12.15. This exercise is related to Example 12.10. (i) Show that (12.42) has a unique solution for

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=+12.15. This exercise is related to Example 12.10.

(i) Show that (12.42) has a unique solution for u when everything else is fixed.

(ii) Show that the PQL estimator of β satisfies (12.43).

(iii) Derive (12.44).

(iv) Consider the following special case: x

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