Question: Both parts please 6. [5 points] Consider a linear regression model: y = Bot Bix te (1.2) where & = e* In(x*+1) and e ~

Both parts please

Both parts please 6. [5 points] Consider a linear regression model: y

6. [5 points] Consider a linear regression model: y = Bot Bix te (1.2) where & = e* In(x*+1) and e ~ N(0, 62). Answer the following questions: (1) If you use the OLS method to estimate model (1.2), are your estimates of the model parameters unbiased and/or consistent? (2) If you use the (conventional) t-test to test Ho: Bi = 0 vs HI Bi # 0 with the OLS estimates, what would happen? Explain briefly

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