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Question: exercise 77 of the variables yi xi only the pair...

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Exercise 7.7 Of the variables (yi, xi) only the pair (yi, xi) are observed. In this case, we say that yi is a latent variable. Suppose where ui is a measurement error satisfying Let ß denote the OLS coefficient from the regression of yi on (a) Ís β the coefficient from the linear projection of yi on z? (b) Is β consistent for β as n oo? (c as n oo. e) Find the asymptotic distribution of yn(3-8 as

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