Question: Consider the three-variable linear regression model discussed in this chapter. a. Suppose you multiply all the X 2 values by 2. What will be the

Consider the three-variable linear regression model discussed in this chapter.
a. Suppose you multiply all the X₂ values by 2. What will be the effect of this rescaling, if any, on the estimates of the parameters and their standard errors?
b. Now instead of (a), suppose you multiply all the Y values by 2. What will be the effect of this, if any, on the estimated parameters and their standard errors?

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a b If you multiply X 2 by 2 you can verify from Equations 747 an... View full answer

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