In the simple linear regression model y = (0 + (1x + u. Suppose that E(u) (

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In the simple linear regression model y = (0 + (1x + u. Suppose that E(u) ( 0. Letting a0 = E(u), 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?

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Introductory Econometrics A Modern Approach

ISBN: 978-0324660548

4th edition

Authors: Jeffrey M. Wooldridge

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Question Posted: Apr 21, 2016 04:45 AM

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In the simple linear regression model y = (0 + (1x + u. Suppose that E(u) (

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In the equation y b 0 b 1 x u add and subtra...View the full answer

Introductory Econometrics A Modern Approach

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