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Suppose that you have the model yi = 51 +$i52 +Ui which you estimate by ordinary least squares. Consider each alternative modication of the model
Suppose that you have the model yi = 51 +$i52 +Ui which you estimate by ordinary least squares. Consider each alternative modication of the model below, and explain how the new estimates of 31 and [32 differ from those from the original model. Consider each of the alternatives separately; do not consider them cumulatively. Be as precise as possible. 1. Subtract mi from yi for each i. 2. Add 8 to each 27% and yi. 3. Add 2 to each yi
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