Question: 1. Take the linear model Yi = xi + u which satisfies MLR.1-MLR.5. Assume Var(u|xi) = 02. Consider the estimator n xy: BE i=1 n

1. Take the linear model Yi = xi + u which

1. Take the linear model Yi = xi + u which satisfies MLR.1-MLR.5. Assume Var(u|xi) = 02. Consider the estimator n xy: BE i=1 n i=1 (1) Explain the terms unbiased and consistent. Does unbiased imply consistent? Does consistent imply unbiased? Explain. (2) Is B a consistent estimator of . (3) Find the asymptotic distribution of V(B B) as n +00. 1. Take the linear model Yi = xi + u which satisfies MLR.1-MLR.5. Assume Var(u|xi) = 02. Consider the estimator n xy: BE i=1 n i=1 (1) Explain the terms unbiased and consistent. Does unbiased imply consistent? Does consistent imply unbiased? Explain. (2) Is B a consistent estimator of . (3) Find the asymptotic distribution of V(B B) as n +00

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