Question: Suppose we have a stochastic model Yi = xi + i Where the is are independent with mean 0 and variance 2xi. Show that the

Suppose we have a stochastic model
Yi = βxi + εi
Where the εi’s are independent with mean 0 and variance σ2xi. Show that the weighted least squares estimator of β is ˆβ = /¯x. Is the standard error for ˆβ that comes from weighted least squares the same as that for ˆB in (4.10)?

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