1. (True/False) Identify whether the following statements are true or false and present reasons why you believe so.

2. (e) Suppose the variance of an estimator is 5 : If the estimator is unbiased, n2

   the estimator is consistent. That is it is likely that the realized values of the estimator is very close to the true population paramter. [Hint: use graphs].

3. (f) OLS residuals (Ub ; not errors, U ) are uncorrelated with regressors (X ; X ; :::; X ). ii b12k

   [Hint: It would be best if you could Ond the sample version of Cov(U;X)) and discuss your conclusion based on this].

4. (g) In a simple regression, the OLS estimator, c1; contains the information of the covariance between the dependent variable, Y; and the regressor, X.[Hint: It would be best if you could Ond the sample version ("analog") of Cov(Y;X) and relate this with c1. Then discuss your conclusion based on this.]