Consider the model y i 0 1 x i u i , for i 1, 2, , N Given the OLS estimator 0 y 1 x, Show that the OLS errors have zero mean, i e , u 0

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Question: Consider the model: y i = ? 0 + ? 1 x i + u i , for i = 1, 2, . . .

Consider the model: y i = ? 0 + ? 1 x i + u i , for i = 1, 2, . . . , N. Given the OLS estimator ?Ë? 0 = Â¯y ? ?Ë? 1 xÂ¯, Show that the OLS errors have zero mean, i.e., Â¯uË? = 0.

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