Consider the regression model Yi = Xi + ui, where ui and Xi{ satisfy the assumptions in
Question:
Yi = βXi + ui,
where ui and Xi{ satisfy the assumptions in Key Concept 4.3. Let denote an estimator of β that is constructed as = /, where and are the sample means of Yi and Xi, respectively.
(a) Show that is a linear function of Yi Y2,..., Yn.
(b) Show that is conditionally unbiased.
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a so that it is lin...View the full answer
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Related Book For 
Introduction to Econometrics
ISBN: 978-0133595420
3rd edition
Authors: James H. Stock, Mark W. Watson
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