Suppose that the classical regression model applies but that the true value of the constant is zero.

Question:

Suppose that the classical regression model applies but that the true value of the constant is zero. Compare the variance of the least squares slope estimator computed without a constant term with that of the estimator computed with an unnecessary constant term.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Econometric Analysis

ISBN: 978-0130661890

5th Edition

Authors: William H. Greene

Question Posted: