Question: Let the model be: Yi B + BTi + i=1,...,n but suppose you are missing data on the nth observation of r. To deal

Let the model be:Yi = B1 + B2.1; + €i i = 1,...,nbut suppose you are missing data on the nth observation of 1. To deal with 

Let the model be: Yi B + BTi + i=1,...,n but suppose you are missing data on the nth observation of r. To deal with the missing data, you do mean imputation, setting Tn = Tn-1 = (n 1)-, then estimating 3 and 3 based on all n observations. (a) Show that, as n, this procedure gives you the same coefficient estimates as simply estimating and 32 from the n-1 observations for which you have complete data. Solution (b) Compare the R-squares from the two regressions. Does goodness-of-fit depend on the approach you take to the missing data?

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a We have y1 1 2x1 1 y2 1 2x2 2 yn 1 2xn n where 1 2 n are iid er... View full answer

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