Suppose that a sample of n = 20 households has the sample means and sample covariances below for a dependent variable and two regressors: 11eb817c_7812_87c5_84e6_c9205fdd06f4_SM2685_00 a. Calculate the OLS estimates of ß 0 , ß h and ß 2 Calculate s 2 u ,. Calculate the R 2 of the regression. b. Suppose that all six assumptions in Key Concept 18.1 hold. Test the hypothesis that ß 1 = 0 at the 5% significance level.

Introduction to Econometrics 3rd Edition by James Stock, Mark Watson

Edition 3ISBN: 978-9352863501

Introduction to Econometrics 3rd Edition by James Stock, Mark Watson

Edition 3ISBN: 978-9352863501

Exercise 6

Suppose that a sample of n = 20 households has the sample means and sample covariances below for a dependent variable and two regressors:

a. Calculate the OLS estimates of ß 0 , ß h and ß 2 Calculate s 2 u ,. Calculate the R 2 of the regression.
b. Suppose that all six assumptions in Key Concept 18.1 hold. Test the hypothesis that ß 1 = 0 at the 5% significance level.

Explanation

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b) Given that Gauss Markov conditions ar...