Economics Homework Help. Multiple Regression & Bivariate Regression Exercise
1. Suppose the model of interest is Yi = 0 + 1X1i + 2X2i + ui
, where E(u|X)=0 and E(u
2
|X)=
and X1 and X2 are uncorrelated in your sample. Will the bivariate regression of Y on Xi have the
same coefficient estimate and standard error for
1
ˆ
as the multivariate regression of Y on X1 and
X2? [6 points]
