Question: Consider the Model y = oxLIE, where E is a random variable that follows a normal distrlbutlon with a mean of zero and a

Consider the Model y = oxLIE, where E is a random variable that follows a normal distrlbutlon with a mean of zero and a standard deviation of and 1 > O Is a constant number _ a) b) c) Show that this model is linear. Construct the OLS estimators for the parameters 130 and Use the model to predict the effect on the treated of increasing the treatment x from 1 to e?

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