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- Xi1,Xi2 ∼ N(1,1.5^2)
- Ui1 ∼ N(0,Xi1^2)
- εi ∼ N(0,2^2)
- Ui2 ∼ εi + 0.5Ui1
- Yi1 = 1−0.5Xi1 +Ui1
- Yi2 = 1 − 0.5Xi2 + Ui2
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