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Consider the following population regression function: Y = Xβ + U
where Y= ,X=
,β =
,U=
Given the following information on population growth rates (Y)and education (X)for 86 countries
,
,
,
,
a)find X'X,X'Y, (X'X)-1 and finally (X'X)-1 X'Y.
b)Interpret the slope,and if necessary,the intercept.
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