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(Y;, X1, X2i) satisfy the following assumptions ; in addition, var(w;/X12, X2i) = 10 and var (X1i) = 3. A random sample of size n=
(Y;, X1, X2i) satisfy the following assumptions ; in addition, var(w;/X12, X2i) = 10 and var (X1i) = 3. A random sample of size n= 342 is drawn from the population. Use the formula below to answer the following questions, 1 o 1 - XX Assume that X, and X, are uncorrelated. Compute the variance of B, The variance of B, is = (Round your response to five decimal places) Assume that corr(X4, X2) = 0.49. Compute the variance of By. The variance of B, is, (Round vour response to five decimal places) Which of the following statements is correct? O A. The larger the correlation between X, and X2, the smaller the variance of B,. Thus, it is best to leave X, out of the regression even if it is a determinant of Y. B. The larger the correlation between X, and X2, the smaller the variance of y. Nevertheless, it is best include X, in the regression if it is a determinant of Y. OC. The larger the correlation between Xand X2, the larger the variance of y. Nevertheless, it is best include X, in the regression if it is a determinant of Y. OD. The larger the correlation between X and X2, the larger the variance of y. Thus, it is best to leave X, out of the regression even if it is a determinant of Y
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