Consider the regression model Yi = b0 + b1X1i + b2X2i + ui .
Question and Solution
Consider the regression model Yi = b0 + b1X1i + b2X2i + ui . Use Approach #2 from Section 7.3 to transform the regressio
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Consider the regression model Yi = b0 + b1X1i + b2X2i + ui . Use Approach #2 from Section 7.3 to transform the regression so that you can use a t-statistic to test a. b1 = b2. b. b1 + 2b2 = 0. c. b1 + b2 = 1. (Hint: You must redefine the dependent variable in the regression.)
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