(Hard.) Pretend Z X is constant. To motivate definition (13), show that cov( IVLS|Z) = 2 X...
Question:
(Hard.) Pretend Z
X is constant. To motivate definition (13), show that cov(βˆ
IVLS|Z) = σ2
X
Z(Z
Z)−1Z
X
−1
.
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