A researcher wants to analyze the effect of a variable x on another variable y using observations from both rural and urban areas He obtained 15 observations from rural areas, 10 observations from urban areas, and estimated the model (1) w-B +B, + e To consider the possibility that the coefficients are different for the two types of observations, the researcher also estimated the model (II) -8+nn + Bz I, + 72 (z, r.) + č, where |i ifi corresponds to a rural area O otherwise Denote the sum of squared residuals from the OLS regressions of (1) and (II) by, respectively SSE, and SSE1- Which of the following statements is true?
A researcher wants to analyze the effect of a variable x on another variable y using observations from both rural and urban areas He obtained 15 observations from rural areas, 10 observations from urban areas, and estimated the model (1) w-B +B, + e To consider the possibility that the coefficients are different for the two types of observations, the researcher also estimated the model (II) -8+nn + Bz I, + 72 (z, r.) + č, where |i ifi corresponds to a rural area O otherwise Denote the sum of squared residuals from the OLS regressions of (1) and (II) by, respectively SSE, and SSE1- Which of the following statements is true?
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter9: Systems Of Equations And Inequalities
Section9.7: The Inverse Of A Matrix
Problem 31E
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Given the estimated model for the variables x and y as
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