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    Gujarati - Question on Regression

    Hi, This is a very silly question. In 87.2, can we just not take the difference of Y(t) when X(t)=3 and 4. In which situations do we take the first derivative vs differencing?
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    P1.T2.209 T - statistic and confidence interval

    Hi, Can anyone please explain the reasoning behind SE calculation as SQRT(15%*85%/60)? 15% is the observed default rate. Thanks!
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