Question: Consider two groups with n 1 , n 2 observations in each group, and let N=n 1 +n 2 We assume that y i =?

Consider two groups with n1 , n2 observations in each group, and let N=n1+n2 We assume that

yi=?1+?ifori=1,2 ,... , n1 and that

yi=?2+?ifori=n1+1,... , N ,

where ?i ~ N ( 0, ?2)

Consider two groups with n1 , n2 observations in each group, and

Show that the least squares estimator for u , u, are n yi nji=1 N 1 2 = E yi ni=n+1

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