question archive (i) Let ßo and ß, be the intercept and slope from the regression of y; on X;, using n observations
(i) Let ßo and ß, be the intercept and slope from the regression of y; on X;, using n observations
Subject:EconomicsPrice: Bought3
(i) Let ßo and ß, be the intercept and slope from the regression of y; on X;, using n observations. Let C? and c2, with c2 + 0, be constants. Let Bo and ß be the intercept and slope from the regression of c?y; on C2x;. Show that Bi (C1/c2), and B. = cißo, thereby verifying the claims on units of measurement in Section 2-4. [Hint: To obtain B1, plug the scaled versions of x and y into (2.19). Then, use (2.17) for Bo, being sure to plug in the scaled x and y and the correct slope.] =C
