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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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