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You Have Analyzed the Relationship Between the Weight and Height

question 65

Essay

You have analyzed the relationship between the weight and height of individuals. Although you are quite confident about the accuracy of your measurements, you feel that some of the observations are extreme, say, two standard deviations above and below the mean. Your therefore decide to disregard these individuals. What consequence will this have on the standard deviation of the OLS estimator of the slope?


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