Question: 4.13 Suppose Yi = b0 + b1Xi + kui, where k is a nonzero constant and (Yi, Xi) satisfy the three least squares assumptions. Show

4.13 Suppose Yi = b0 + b1Xi + kui, where k is a nonzero constant and (Yi, Xi) satisfy the three least squares assumptions. Show that the large-sample variance of b n

1 is given by s 2

b1 = k2 1n var3 1Xi - mX2ui4 3var1Xi2 24 . [Hint: This equation is the variance given in Equation (4.19) multiplied by k2.]

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