Question
Consider the following models: Model I: Model II: Yi = 1 +2Xi +ui Yi = a1 +a2X+ i +ui where Y* and X* are
Consider the following models: Model I: Model II: Yi = 1 +2Xi +ui Yi = a1 +a2X+ i +ui where Y* and X* are standardized variables. Show that a2 = 2(5x/Sy) and hence establish that although the regression slope coefficients are independent of the change of origin they are not independent of the change of scale
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
