Show that Eq (7 4 7) can also be expressed as where b 23 is the slope coefficient in the regression of X 2 on X 3 Recall that b 23 Icirc pound x 2i x 3i Icirc pound x 2 3i Ey,(x2 b23x3i) E(x2 b23x3)2 net (of x3) covariation between y and x2 net (of 3) variation in x2...

Show that Eq. (7.4.7) can also be expressed as where b 23 is the slope coefficient in

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Show that Eq. (7.4.7) can also be expressed as

Ey,(x2 – b23x3i) E(x2; – b23x3)2 net (of x3) covariation between y and x2 net (of 3) variation in x2

where b₂₃ is the slope coefficient in the regression of X₂ on X₃. Recall that b₂₃ = Î£x_2ix_3i / Î£x²_3i.

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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 04:26 AM

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Show that Eq. (7.4.7) can also be expressed as where b 23 is the slope coefficient in

Question:

Ey,(x2 – b23x3i) E(x2; – b23x3)2 net (of x3) covariation between y and x2 net (of 3) variation in x2

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Basic Econometrics

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