Question: Suppose we t the usual model K; = 60 + 31 53;: + e; assuming E05) 2 U and V3I(Eg') = 02. Suppose, however, that

Suppose we t the usual model K; = 60 + 31

Suppose we t the usual model K; = 60 + 31 53;: + e; assuming E05) 2 U and V3I(Eg') = 02. Suppose, however, that E03] 2 5 and V&I(E) = 1:3. How does this affect the mean and variance of 31

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