In the bivariate linear regression model
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In the bivariate linear regression model

(a) In the bivariate linear regression model


(a) Consider the bivariate linear regression model


(b) The LIE for the mean states that given two random variables Z and W


i) Use (4), (9) and the properties of the expectation operator to prove that


c) In light of your answer to (b) above, what circumstances provide the best opportunity to precisely estimate ^β1? Briefly explain.

Hint
EconomicsLinear regression is a linear approach for the relationship modelling between the scalar response and one or more of the explanatory variables. The explanatory variables are also called as the dependent and independent variables. And, the case of this one explanatory variable is known as the simple linear regression. Also, in this regression, the relationships are modeled of which the unk...

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