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### Video instructions and help with filling out and completing How Form 2220 Reduced

Instructions and Help about How Form 2220 Reduced

Hello in this video we need to solve reduce form war model as it appears in first question so in the previous video I show you how to solve for reduce form I mean within although we didn't do this much with matrix operation much matrix inverse and so on in this video so basically we see here as I mentioned before I see that XT which is left hand side the side variable it appears in the right hand side of the second equation to the left hand side okay again first what we are doing we are leaving one blade matric blank matrix and now i'm dealing with the left hand side of this system my left hand side variable is 416 and the second is that right what is the coefficient of x t in the first the question this is one I wrote it here what is the coefficient of Z T in the first first equation is zero because I don't have any ZT in the first equation right and now I go to the second equation because I am done with the left hand side of the first equation in the second equation left hand side what is the coefficient of x T and the second equation this is minus beta right so I write minus beta and what is the partition of ZT it's one as this in the coefficient here is just one so I'm almost done with the left hand side I'm already done with it get inside now I'm left with this right hand side again I follow the same tactic I leave one black one blank matrix again I see that I have XT minus 1 is it t minus 1 here yeah so because XT is appearing in the first line I should write XT minus 1 first XT minus 1 and the team visit appears in the second equation so I would write the leg of ZT in the second line t minus 1 okay so I'm looking down to the first equation ok looking now for the first two the first equation yeah what is the coefficient of XT minus 1 in the first equation I see that this is comma 1 1 so I put it here now let me go to the t minus 1 what is the coefficient of the t minus 1 in the first equation I see that this is gamma 1 2 so I write to here now because I'm done with the first equation variables now I go to second equation and again I'm asking the same question what is the coefficient of x t in the second equation now as well as as as you can see this is comma 2 1 come on to 1 what is the coefficient of Z Z minus 1 this is as we see it's comma 2 2 and plus we have 2 error terms for the first equation 1 for the second is epsilon 2 so I just put them in matrix form and this is the matrix form in general but it's not reduced for it can't be called a reduced form why because you know reduced form I need to get rid of I need to get rid of this matrix in the left hand side how can I do that I will take the inverse of this and let's say this is a matrix a matrix ok this matrix is I will I will need to find the inverse of it I will multiply it by n minus 1 and they will cancel out and then we call it and then I will say this is B matrix I need also to multiply it three multiplied by a minus 1 because I multiplied a matrix this matrix this guy I multiplied it by universe in order to get to get a identity matrix I mean I just wanted to get rid of this guy okay not because we do this guy I need to multiply it by 3 multiplied by its inverse and if I multiply by its inverse I need to do the same thing in the right hand side and I also need to multiply this epsilon Epsilon I will call it I'd say let's call this the whole matrix let's call them let's call it Omega so this Omega also should be multi pre multiplied by a minus 1 you know to keep the important so first I need to find a minus 1 and the way to do it is first I write 1 over determinant of this matrix this is a matrix and determinant I know that I should multiply one by one I mean the major diagonal minus this the second matter major/minor diagram so my major diagonal multiplication gives me one monitor - minor diagonal gives me 0 so 1 minus 0 is just 1 and I will multiply it by and the rest is easy so these guys actually cancel out one over one is this one now what what I will do here I will just change this as a summation this this guy is this let me remain two this these two girls this is my major okay so if I want to find inverse I first I do one over determinant which is which in our case was one over one and I cancelled them out multiplied by our matrix will be in this form I will ship the places of elements of major tile and this one will come here and the other one will come here in this case both of them one and the it will be the same one one because if you ship the places one is 100 it doesn't make sense and I will change the science of of the signs of the elements of the magnetized now so if I had minus P in this case I would have.