3.20. If the error terms in a regression model are independent N(0, o²), what can be said about the error terms after transformation X' = 1/X is used? Is the situation the same after transformation Y' = 1/Y is used?

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3.20. If the error terms in a regression model are independent \( N(0, \sigma^2) \), what can be said about the error terms after transformation \( X' = 1/X \) is used? Is the situation the same after transformation \( Y' = 1/Y \) is used?

3.21. Derive the result in (3.20).

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Transcribed Image Text:The image displays a keyboard and partially visible text on a screen. Here is the transcribed text from the screen: --- 3.20. If the error terms in a regression model are independent \( N(0, \sigma^2) \), what can be said about the error terms after transformation \( X' = 1/X \) is used? Is the situation the same after transformation \( Y' = 1/Y \) is used? 3.21. Derive the result in (3.20). --- No graphs or diagrams are present in the image.
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