PLEASE SEE THE NOTE BELOW THE QUESTION REGARDING GAUSS MARKOV ASSUMPTIONS

Imagine you want to measure the effect of study time (in hours) on students' ECO3150 final grade. You estimate the following regression equation: yi = BIritei where y; is the final grade and x; is the study time (in hours). It's easy to show that the least squares estimator for this model is M Tiyi B = i=1 a) What is the expectation of 31 (E(31)) if the final grade also depends on a constant term (i.e. yi = Bo+ Bici+a:)1. What are the two necessary conditions for B1 to be unbiased? b) What is the conditional variance of B1 (var(Biz;))? c) Show that var(Bilxi)