Consider observations on two sequences of random variables Xi and Yi -.pdf
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Consider observations on two sequences of random variables Xi and Yi . Suppose that Cov(Xi,Yi)=0.7 , Var(Xi)=2 and Var(Yi)=1 . Suppose that the following regression equation was estimated using the OLS method. Yi=0+1Xi+ui Calculate the value of the R2 and enter it into the box below (accurate to 3 decimal places).
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