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Obtain the estimates of the original model

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Reference no: EM132587762

1. Consider the linear regression mode

Yi=a +b1Xi +Ui

Suppose that there are no data on Xi but we have data on Zi=ao+a1X1, whrer ao and a1 are arbitrary known constants. Using data of variable Zi we can estimate

Yi=co+c1Zi +Ui

Show how from the estimates of cˆo and cˆ1 you can obtain the estimates of the original model.

Reference no: EM132587762

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