Effect of the rescaling


Question: Suppose you multiply all X1 values by 2 in an equation with one independent variable (X1) and a constant. What will be the effect of this rescaling, if any, on the coefficients (βoˆ and β1ˆ) and their standard errors? Prove your answer mathematically (You are not supposed to use run/calculate a regression as a proof).

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Microeconomics: Effect of the rescaling
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