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View Gujarati 06.05

Category:Gujarati -> Chapter 06
Question:
06.05 What is the relationship between
a. B1 and b1
b. B2 and b2
c. ui and ei? Which of these entities can we observe and how?

Answers:

06.05 a
b1 is an estimator of B1.

06.05 b
b2 is an estimator of B2.

06.05 c
ei is an estimator of ui. We never observe B1, B2, and u. Once we have a specific sample, we can obtain their estimates via b1, b2, and e.

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