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5For proof, see Robert V. Hogg and Allen T. Craig, Introduction to Mathematical Statistics, 2d ed., Macmillan, New York, 1965, p. 144.

Gujarati: Basic I. Single-Equation 5. Two-Variable © The McGraw-Hill

Econometrics, Fourth Regression Models Regression: Interval Companies, 2004

Edition Estimation and Hypothesis

Testing

162 PART ONE: SINGLE-EQUATION REGRESSION MODELS

Furthermore, it can be shown that Z2 is distributed independently of Z1.6 Therefore, by virtue of Theorem 5.5, the variable t = (3)

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