The following equations represent a two-equation model: y₁ = β₁₀ ₊ α₁y₂ + z₁β₁ + u₁ Y₂ = β₂₀ ₊ α₂y₁ + z₂β₂ + u₂ Where, y₁ and y₂ are the: A)endogenous variables. B)structural error terms. C)exogenous variables. D)intercepts.

Question

Quizplus · Accepted Answer

The variables y₁ and y₂ are the endogenous variables in this model, as they are the variables being explained or predicted by the other variables in the equations.

The Following Equations Represent a Two-Equation Model:​ Y1 = β10

The Following Equations Represent a Two-Equation Model: Y₁ = β₁₀