Question: A nonnegative integer variable y that is geometric distributed has density (or more formally probability mass function) f (y) = (y + 1)(2)y(1 + 2)
A nonnegative integer variable y that is geometric distributed has density (or more formally probability mass function) f (y) = (y + 1)(2λ)y(1 + 2λ)
−(y+0.5), y =
0, 1, 2,...,λ> 0. Then E[y] = λ and V[y] = λ(1 + 2λ). Introduce regressors and suppose γi = exp(x iβ). Assume the data are independent over i and xi is nonstochastic and β = β0 in the dgp.
(a) Repeat Exercise 5–2 for this model.
(b) Repeat Exercise 5–3 for this model.
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