Derive the final equality in Equation (13.10). Use the definition of the covariance, and remember that, because

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Derive the final equality in Equation (13.10). Use the definition of the covariance, and remember that, because the actual treatment \(X_{i}\) is random, \(\beta_{1 i}\) and \(X_{i}\) are independently distributed.

Equation (13.10)

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Introduction To Econometrics

ISBN: 9780134461991

4th Edition

Authors: James Stock, Mark Watson

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