3 Consider the linear regression model Y i a bx i u i Suppose that there are no data on xi but we have data on Zi ao a 1 x 1 , where ao and a 1 are arbitrary known constants Using data of variable Zi we can estimate Yi c o c 1 Z i U i Show how from the estimates of c o and c 1 you can obtain the estimates of the original model

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Question: 3.Consider the linear regression model Y i = a+bx i + u i Suppose that there are no data on xi but we have data

3.Consider the linear regression model

Y_i = a+bx_i + u_i

Suppose that there are no data on xi but we have data on Zi = ao +a₁x_{1 ,}where ao and a₁are arbitrary known constants. Using data of variable Zi we can estimate Yi=c_o+c₁Z_i +U_i

Show how from the estimates of c_o and c₁ you can obtain the estimates of the original model.

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