Assume al| variable have expected value 0. 1. Suppose the observable variables x\" y,. and z, are related by the linear model 1'; = .51": "' .321} +5: oov(x,s] = cov(z.) = 0 Suppose that x}. =g(z,) for a known function g(-). Are the parameters ,6, and ,62 identied? Explain. 2. Consider the linear model Y: 3 39": +5 cov(x,,s,)=0 Suppose that y,is measured with error. |. e. the data under study consist of x,.y,' such that J": = M \"I: oov(x,q] = cov(s.n) = 0 What is the relationship between A? and the regression coefcient in the linear model 1'; =xx} \"\"5! oov(x,..f,)=0 Does your answer imply that measurement error is irrelevant to the empirical analyst, in this case