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(d), (e) please Q3. Suppose X1 and X2 are independent. Both have Bernoulli distribution, equal to one with probability 0.5. a) What is the correlation

(d), (e) please
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Q3. Suppose X1 and X2 are independent. Both have Bernoulli distribution, equal to one with probability 0.5. a) What is the correlation coefficient between X1 and X2 ? b) What is the probability distribution of the product X1X2 ? c) What is the covariance between X1 and X1X2 ? d) Suppose E(YX1,X2)=1+X1+2+X1X2, Now you run a regression: Yi=0+1X1+ui Does ^1 suffer from OVB? If yes, calculate if you can, or explain why you cannot (what information is missing). If no, why? e) Suppose E(YX1,X2)=1+X1+X2+X1X2. Now you run a regression: Yt=0+1X1+2X2+ei Does conditional mean independence hold for any of these regressors? Prove or disprove your claim

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