Question: Exercise 7.1 Take the model Y = X B+X%B2+e with E[Xe] = 0. Suppose that B, is estimated by regress- ing Y on X, only.

Exercise 7.1 Take the model Y = X B+X%B2+e with E[Xe]

Exercise 7.1 Take the model Y = X B+X%B2+e with E[Xe] = 0. Suppose that B, is estimated by regress- ing Y on X, only. Find the probability limit of this estimator. In general, is it consistent for Bi? If not, under what conditions is this estimator consistent for B? Exercise 7.1 Take the model Y = X B+X%B2+e with E[Xe] = 0. Suppose that B, is estimated by regress- ing Y on X, only. Find the probability limit of this estimator. In general, is it consistent for Bi? If not, under what conditions is this estimator consistent for B

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