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a. Use the method of restricted least squares to find out if it is worth adding the Pop (population) variable to the model.
b. Divide both Educ and GDP by Pop to obtain per capita Educ and per capita GDP. Now regress per capita Educ on per capita GDP and compare your results with those given in Example 4.5. What conclusion can you draw from this exercise?
For Information: Refer to Example 4.5. |
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