Assume all variable have expected value 0. 1. Suppose the observable variables x,. y, and z, are related by the linear model y. = Ax + 82 +6, cov ( x, s ) = cov(2,6) =0 Suppose that x -g(z ) for a known function g (.). Are the parameters , and A identified? Explain. 2. Consider the linear model Y = AX +6, cov (x.6) = 0 Suppose that y is measured with error, i. e. the data under study consist of x.y, such that VI =y. +7 cov ( x.n) = cov(6.7) =0 What is the relationship between / and the regression coefficient in the linear model cov(x .5) -0 Does your answer imply that measurement error is irrelevant to the empirical analyst, in this case