(This requires Appendix 12.5) On the textbook website, www.p
Question and Solution
(This requires Appendix 12.5) On the textbook website, www.pearsonglobaleditions.com/Stock_Watson, you will find the dat
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(This requires Appendix 12.5) On the textbook website, www.pearsonglobaleditions.com/Stock_Watson, you will find the data set WeakInstrument, which contains 200 observations on (Yi , Xi , Zi ) for the instrumental regression Yi = b0 + b1Xi + ui . a. Construct bnTSLS 1 , its standard error, and the usual 95% confidence interval for b1. b. Compute the F-statistic for the regression of Xi on Zi . Is there evidence of a
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