Question: 3.6 Consider the multiple regression model containing three independent variables, under Assumptions MLR.1 through MLR.4: y = B+ Bx + Bx2 + B3x3 + u.

3.6 Consider the multiple regression model containing three independent variables, under Assumptions MLR.1 through MLR.4: y = B+ Bx + Bx2 + B3x3 + u. You are interested in estimating the sum of the parameters on x and x2; call this = + B. (i) Show that + B is an unbiased estimator of (ii) Find Var() in terms of Var(B), Var(B), and Corr(B. B).

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