Question: Suppose data are generated such that Yi = Bo + BiXi + ui, where Elu | X] = 0. Suppose the analyst has developed a

 Suppose data are generated such that Yi = Bo + BiXi

Suppose data are generated such that Yi = Bo + BiXi + ui, where Elu | X] = 0. Suppose the analyst has developed a method that delivers the following estimates EY [ X = 3] =4 EY | X = 6] = 10 Var(X) = 5 Var (Y) = 2. The analyst has a simple random sample with many observations, and believes the estimates above were from consistent estimators. i. Does this problem assume SLR.1? ii. Using the assumption E[u | X] = 0, interpret B1 in the top equation of this problem. iii. Provide an estimate of B1 using these estimates. iv. Provide an estimate of E[Y [ X = 4]. v. Estimate whether Cov(Y, X) > 0 (positive covariance) or Cov(Y, X)

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