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3. Give the population model Yi = β0 + β1Xi + ui T he variance of...

3. Give the population model Yi = β0 + β1Xi + ui T

he variance of β1 will (BLANK) as the variation in x decreases, and it will decrease if we (BLANK) the variance of the error term.

a) increase. increase b) increase. decrease c) decrease. decrease d) decrease. increase

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