r2 3 r13
1 ' 23
Also establish the relationship between the b's and the p's.
(Note that in the preceding relations n denotes the sample size; r12, r13, and r2 3 denote the correlations between Y and X2, between Y and X3, and between X2 and X3, respectively.) C.14. Verify the Eqs. (C.10.18) and (C.10.19). *C.15. Constrained least-squares. Assume y = Xp + u (1)
which we want to estimate subject to a set of equality restrictions or constraints:
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