(Y, X. X2) satisfy the following assumptions ; in addition, var (u,X. X2)) = 9 and var (X1) = 6. A random sample of size n = 315 is drawn from the population. Use the formula below to answer the following questions, n 1-p X2 Assume that X, and X, are uncorrelated. Compute the variance of P, The variance of ?, is, (Round your response to five decimel places) Assume that corr (X, X2) = 0 62. Compute the variance of , The variance of ?, s, (Round your response to five decimal places) Which of the following statements is correct? O A. The larger the corelation between X, and X2. the smaller the variance of P. Thus, it is best to leave X, out of the regression even if it is a deteminant of Y. O B. The larger the corelation between X, and X2. the larger the varlance of P,. Thus, it is best to leave X, out of the regression even if it is a determinant of Y. OC. The larger the correlation between X, and X. the smaller the variance of B1. Nevertheless, it is best include X, in the regression if it is a determinant of Y. O D. The larger the correlation between X, and X2. the larger the varlance of , Nevertheless, It is best include X, in the regression if it is a determinant of Y.

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