Questions from Econometrics

Q: Suppose that the linear model, written in matrix notation,

Suppose that the linear model, written in matrix notation, y = X + u satisfies Assumptions E.1, E.2, and E.3. Partition the model as y = X1b1 + X2...

Q: Let y be any response variable and x a binary explanatory variable

Let y be any response variable and x a binary explanatory variable. Let {(xi, yi): i = 1, . . . , n} be a sample of size n. Let n0 be the number of observations with xi = 0 and n1 the number of observ...