Testing Assumptions of Linear Regression in SPSS

Multiple Regression: Introduction

Consider the multiple linear regression model containing three independent variables,under assumptions MLR.1-MLR.4:y = β0 β1x1 β2x2 β3x3 u (2)You are interested in estimating the sum of the parameters on x1 and x2; call thisθ1 = β1 β2.∗Department of Economics, Oberlin College, 227 Rice Hall, 10 N. Professor St., Oberlin, OH 44074.E-mail: martin.saavedra@oberlin.edu.11. Show that ˆθ1 = ˆβ1 ˆβ2 is an unbiased estimator of θ1.2. Find V ar(ˆθ1) in terms of V ar( ˆβ1), V ar( ˆβ2), and Cov