1 Matching Annotations
- Nov 2023
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www.econometrics-with-r.org www.econometrics-with-r.org
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σ2^β1=1nVar[(Xi−μX)ui][Var(Xi)]2.
This formula is wrong. It should be as follows: $$Var(\hat{\beta}1) = \frac{\sum{i=1}^N Var(x_i - \bar{x})^2 u_i}{(Var(\sum_{i=1}^N (x_i - \bar{x})^2))}$$
Otherwise, $\sigma_{\hat{\beta}_1}$ is different for each $u_i$.
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