With the additional assumption that p2 = p3 = 0, it can be shown that fa E yix2i + fa E yix3i) 2
Therefore, if the null hypothesis is true, both (8.5.4) and (8.5.5) give identical estimates of true a2. This statement should not be surprising because if there is a trivial relationship between Y and X2 and X3, the sole source of variation in Y is due to the random forces represented by ui. If, however, the null hypothesis is false, that is, X2 and X3 definitely influence Y, the equality between (8.5.4) and (8.5.5) will not hold. In this case, the ESS will be
Was this article helpful?
Learning About The Rules Of The Rich And Wealthy Can Have Amazing Benefits For Your Life And Success. Discover the hidden rules and beat the rich at their own game. The general population has a love / hate kinship with riches. They resent those who have it, but spend their total lives attempting to get it for themselves. The reason an immense majority of individuals never accumulate a substantial savings is because they don't comprehend the nature of money or how it works.