Question

Exercise 7.17 An economist reports a set of parameter estimates, including the coefficient esti- mates βι 1.0, β2-0.8, and standard errors s(A)-0.07 and s(A) 0.07. The author writes The estimates show that Bi is larger than B2. 2 (a) Write down the formula for an asymptotic 95% confidence interval for θ A As expressed as a function of βι, β2, s(A), s(As) and p, where ρ is the estimated correlation between A and (b) Can ρ be calculated from the reported information? (c) Is the author correct? Does the reported information support the author's claim? :52.

Answer 1