Show that r 2 defined in (3.5.5) ranges between 0 and 1. You may use the CauchySchwarz

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Show that r² defined in (3.5.5) ranges between 0 and 1. You may use the Cauchy–Schwarz inequality, which states that for any random variables X and Y the following relationship holds true:

[E (XY)]² ≤ E(X²) E(Y²)]

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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 03:06 AM

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Show that r 2 defined in (3.5.5) ranges between 0 and 1. You may use the CauchySchwarz

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From the CauchySchwarz inequality it follows ...View the full answer

Basic Econometrics

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