Question: Consider the following models. Model A: Yi = 0 1X1i 2X2i u1i Model B: (Yi X1i) = 0 1X1i 2X2i u2i. a) Will OLS estimates
Consider the following models. Model A: Yi = 0 1X1i 2X2i u1i Model B: (Yi X1i) = 0 1X1i 2X2i u2i. a) Will OLS estimates of 1 and 1 be the same? Why? b) Will OLS estimates of 2 and 2 be the same? Why? c) What is the relationship between 1 and 1? d) Can you compare the R2 terms of the two models? Why or why not
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