(Answered) The standard deviations of the distributions of b2 and b3

Management Studies

The standard deviations of the distributions of b2 and b3 for the 10 million samples in Figure 3.5 are both 0.45. Verify that this is what you would expect theoretically, given that the correlation between X2 and X3 is 0.9962 and that S22 = 665 and S33 = 660.

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