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3. Suppose that you have observations (yi, Xi)?_, that are i.i.d. copies of the random variables (y, X) where y is a dummy variable. You

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3. Suppose that you have observations (yi, Xi)?_, that are i.i.d. copies of the random variables (y, X) where y is a dummy variable. You want to find out the effect of X on Ely|X]. For this purpose, you assume a model: y = BIX te where E[elX] = 0. (a) What is Var(EX)? (b) What is the asymptotic variance of your OLS estimator of B

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