= An investigator correctly believes that the relationship between two vari- ables x and y is...

 

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= An investigator correctly believes that the relationship between two vari- ables x and y is given by y; - B + Bx + i. Given a sample of observations on y, x, and a third variable z (which is correlated with x and uncorrelated with ), the investigator estimates as n (Zi - z) (Yi - y) n ( zi - z) (xi x) - i=1 Demonstrate that this estimator is unbiased. [2p] = An investigator correctly believes that the relationship between two vari- ables x and y is given by y; - B + Bx + i. Given a sample of observations on y, x, and a third variable z (which is correlated with x and uncorrelated with ), the investigator estimates as n (Zi - z) (Yi - y) n ( zi - z) (xi x) - i=1 Demonstrate that this estimator is unbiased. [2p]

Answer rating: 100% (QA)

To demonstrate that the given estimator of 2 is unbiased we need to show that its expected value is equal to the true value of the parameter 2 The est... View the full answer