a. Prove the result directly using matrix algebra. b. Prove that if X contains a constant term
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a. Prove the result directly using matrix algebra.
b. Prove that if X contains a constant term and if the remaining columns are in deviation form (so that the column sum is zero), then the model of Exercise 8 below is one of these cases. (The seemingly unrelated regressions model with identical regressor matrices.)
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First in order to simplify the algebra somewhat without losing any generality we will scale the colu...View the full answer
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