Question: 02 Q2. (5 points) Consider the conditional variance of OLS estimator B, in SLR, Et=1(xi -x) 2 or SSTx We have proved in class that

 02 Q2. (5 points) Consider the conditional variance of OLS estimator

02 Q2. (5 points) Consider the conditional variance of OLS estimator B, in SLR, Et=1(xi -x) 2 or SSTx We have proved in class that , is BLUE under Gauss Markov assumptions. Now let us investigate whether , is consistent. For it to be consistent, ET-1(xi - x) must have an upward trend as sample size n T. Notation for this question: In order to consider SSTx or Et-,(xi - x)2 at different sample sizes, let x for a sample of size n be x = = En-, Xi, and n the sum of squared total deviations of x from its own mean in a sample of size n be SSTY = EL-1(xi - x7)2 Hence, starting with a sample of size n, if we add one more observation to the sample, xn and SSTn+1 become - Enti n+ 1 List Xi and Er (xi - xn+1) respectively. Is OLS estimator consistent, i.e. is Ef-1(xi - xn)?

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