In the simple linear regression model 11eb9ee2_f05e_47ee_8edd_add77263576d_SM2712_11 , suppose that 11eb9ee2_f05e_47ef_8edd_c3eec1fcaadf_SM2712_11 . Letting 11eb9ee2_f05e_47f0_8edd_45158b72c5f7_SM2712_11 , show that the model can always be rewritten with the same slope, but a new intercept and error, where the new error has a zero expected value.

Introductory Econometrics 4th Edition by Jeffrey Wooldridge

Edition 4ISBN: 978-0324660609

Edition 4ISBN: 978-0324660609

Exercise 12

In the simple linear regression model

, suppose that

. Letting

, show that the model can always be rewritten with the same slope, but a new intercept and error, where the new error has a zero expected value.

Explanation

Verified

Regression analysis is a statistical ana...