You Regress Y On Two Explanatory Variables X1 And X2 Suppose The Variance Of The
You regress Y on two explanatory variables, X1 and X2. Suppose the variance of the regression is equal to 1600, and the variance of X1=1. There are 401 observations. What is the
variance of ???? in the following:
(Hint, what is the R2 of a regression of X1 on X2)
a) X1 and X2 are uncorrelated.
b) X1 and X2 have correlation r=.5?
c) X1 and X2 have correlation r=.75?
d) X1 and X2 have correlation r=.95?