Regression through the origin Consider the following regression through the origin Y i 2 X 2i 3 X 3i u i a How would you go about estimating the unknowns b Will u i be zero for this model Why or why not c Will u i X 2i u i X 3i 0 for this model d When would you use such a model e Can you generalize...

a The normal equations would be b No for the sa ...

Regression through the origin. Consider the following regression through the origin: Y i = 2 X

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Regression through the origin. Consider the following regression through the origin:

Y_i = β̂₂X_2i + β̂₃X_3i + û_i

a. How would you go about estimating the unknowns?

b. Will Σû_i be zero for this model? Why or why not?

c. Will Σû_i X_2i = Σû_i X_3i = 0 for this model?

d. When would you use such a model?

e. Can you generalize your results to the k-variable model?

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Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

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Question Posted: Apr 30, 2018 03:51 AM

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Regression through the origin. Consider the following regression through the origin: Y i = 2 X

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a The normal equations would be b No for the sa...View the full answer

Basic Econometrics

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