Suppose that theory predicts that: P;- What does this theory imply about the coefficients of the following regression: D 9: =a +B + orę + Et

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D:
Suppose that theory predicts that: P;=
r- 9t
What does this theory imply about the coefficients of the following regression:
9: = a + B + pr+ Et
O a.a=0 and B=1 and o= -1
Ob.a=0 andB=1 and o= 1
Oca=0 and B=1 and o=0
Od.a 0 and B= -1 and o= 1
Transcribed Image Text:D: Suppose that theory predicts that: P;= r- 9t What does this theory imply about the coefficients of the following regression: 9: = a + B + pr+ Et O a.a=0 and B=1 and o= -1 Ob.a=0 andB=1 and o= 1 Oca=0 and B=1 and o=0 Od.a 0 and B= -1 and o= 1
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