Using matrix notation, it can be shown varcov () = 2 (X'X) 1 What happens to
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Using matrix notation, it can be shown
var–cov (β̂) = σ2(X'X)−1
What happens to this var–cov matrix:
a. When there is perfect multicollinearity?
b. When collinearity is high but not perfect?
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a Since in the case of perfect multicollinearity the XX matrix cannot be ...View the full answer
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