Given y=0+1 x+ 2 z+u

Xbar =1/n(Xi)=1/100*120=1.2

Ybar=1/n(Zi)=1/100*80=0.8

Zbar=1/n(Yi)=1/100*400=0.4

The residual variance is u'u = 392.65

The variance-covariance matrix of estimates is0

The R2 for the regression is0.9816

Degree of freedom is 100-3-1= 96

The OLS estimates for the regression are: y = 0 + 0.5x + 0.2z + u.

1. Explain step by step how to calculate standard error for the first hypothesis test is testing whether 2 is equal to -1