TEST BANK FOR Econometric Analysis 5th Edition By William H. Greene
Chamberlian School of Nursing
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Exam (elaborations) TEST BANK FOR Econometric Analysis 5th Edition By William H. Greene (Solution manual)
- Exam (elaborations) • 155 pages • 2021
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1. (a) Let . The normal equations are given by (3-12), , hence for each of the 
columns of X, x 
 
 
 
 
 
 
= 
n x 
x 
X 
1 
. . 
1 1 
X′e = 0 
= i i i k, we know that xk’e=0. This implies that Σ = 0and x e . i i e Σ 0 
(b) Use Σ = 0 to conclude from the first normal equation that i i e a = y − bx . 
(c) Know that Σ = 0 and . It follows then that i i e Σ = 0 i i i x e Σ ( − ) = 0 i i i x x e . Further, the latter 
implies ( )( ) = 0 i Σ − bx i ...
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