SOLVED: Question 2 (0.5 mark) Consider the multiple regression model containing three independent variables under Assumptions MLR through MLR.4:y = Bo B1X1 B2X2 B3X3 uYou are interested in estimating the sum of the parameters on X1 and X2; call this θ1 = B1 B2. Show that θ1 = B1 B2 is an unbiased estimator of θ. Find Var(θ1) in terms of Var(B1), Var(B2), and Corr(B1, B2).
SOLVED: Question 2 (0.5 mark) Consider the multiple regression …
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