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Yu are interested in estimating the following modely

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Reference no: EM13372764

You are interested in estimating the following model

Y = ao+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: EM13372764

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