Basic Econometrics 5th Edition by Damodar Gujarati,Dawn Porter

تمرين 1

Consider the data in Table 7.5.
TABLE 7.5 Based on these data, estimate the following regressions:
Yi = 1 + 2 X 2 i + u 1 i (1)
Yi = 1 + 3 X 3i + U 2i (2)
Yi = 1 + 2 X 2i + 3 X 3i + u i (3)
Note: Estimate only the coefficients and not the standard errors.
a. Is 2 = 2 Why or why not
b. Is 3 = 3 Why or why not
What important conclusion do you draw from this exercise