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7.22. In the regression model Y; = Bo + B1Xi + B2(3X} – 2) +Ei, i = 1,2,3, with X1 = -1, X2 = 0, and X3 = 1, what happens to

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Answer: Answer & Least square estimates Bo, By, Ba are obtained by minimize 4(Yi-Po - Pixi - Px (311 - 215 with respect to Pood 0 : ( 4;- fo- F, 71) *; 30 i (a) (- 41+ Y3) -P = 0 Hence least squares estimates of Po and P, are unchanged it ß2=o.

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