Linear relationship between explanatory variables

Assignment Help Econometrics

Reference no: EM13110160

You are interested in estimating the following model

Y = a_o+a₂X₂ +a₂X₂+u

However, you have detected an exact linear relationship between the explanatory variables so that X₂=200-3X₁. Rewrite the model to show that this is in fact a two-variable model rather than a three-variable model. Define the parameters (the constant and the slope).

Reference no: EM13110160

Questions Cloud

Evaluate true proportion of coin head by confidence interval : We want to test the hypothesis about fairness of spinning the coin. Evaluate the true proportion of heads. Use 95% confidence interval. Do not forget to check conditions first.

Numerical and verbal hypothesis : Formulate both a numerical and verbal hypothesis statement regarding the research issue we are using for this hypothesis is how men dominate the workforce over women.

How are flowers of monocots different from those of dicots : In what way does the fertilization and development of the conifer seed differ from that of the angiosperm?

Explain the concept of bacterial evolution : Explain the concept of Bacterial Evolution. What are the main differences between the three groups of the Domains? (Archaea, Bacteria, and Eukarya)

Linear relationship between explanatory variables : Rewrite the model to show that this is in fact a two-variable model rather than a three-variable model. Define the parameters

Why would some microorganisms grow on the surface : Why would some microorganisms grow on the surface of some broth in a test-tube?

Formulating an ilp model : Kentwood Electronics manufactures three components for stereo systems: CD players, tape decks, and stereo tuners. The wholesale price and manufacturing cost of each item are:Component Wholesale Price Manufacturing CostCD Player.

Does the gymnosperm embryo use the same nutritive tissue : What further adaptations have gymnosperms made for life on land when compared with the ferns?

Research and evaluation : What value is business research and hypothesis testing to a company? How long should it take a company to complete a scientific research study?

User Account

All Pages