Question: Consider the linear regression model Y = o + Xi + Ui, E[ui|Xi] = 0. (1) (5 pts) What is the OLS estimator for

Consider the linear regression model Y = o + Xi + Ui,

Consider the linear regression model Y = o + Xi + Ui, E[ui|Xi] = 0. (1) (5 pts) What is the OLS estimator for Bo? (2) (10 pts) We know that B show that (3) (10 pts) Calculate n B n =1 = i=1 = (Yi-in) In In i=1 xi (Yi-in) xi (xiIn)' where yn -n = 1 Yi, xn n = n n 1 (xi - In) (Yi In) (xi-xn) i=1 -1 (; - In)2

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