Question: Partial correlation (see Exercise 5.8): (a) Illustrate how the partial correlation rY1j2 can be represented using geometric vectors. Draw the vectors y(; x( 1, and
Partial correlation (see Exercise 5.8):
(a) Illustrate how the partial correlation rY1j2 can be represented using geometric vectors.
Draw the vectors y(; x(
1, and x(
2, and define e1 [ fEi1j2g and eY [ fEiYj2g (where i is the subscript for observations).
(b) (Use the vector diagram in part
(a) to show that the incremental F-test for the hypothesis H0: β1 = 0 can be written as F0 = ðn & k & 1Þr2 Y1j2 1 & r2 Y1j2 Recalling part
(b) of Exercise 5.8, why is this result intuitively plausible?
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