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Consider the regression model

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Reference no: EM131250978

Consider the regression model:

Yi = BXi + ui

where ui and Xi satisfy Assumptions MLR1-MLR6

i) Let B-hat denote an estimator of B that is constructed as B-hat = Y-bar/X-bar, where Y-bar and X-bar are the sample means of Yi and Xi, respectively. Show that B-hat is conditionally unbiased.

ii) Derive the least squares estimator of B

iii) Show that the estimator is conditionally unbiased

iv) Derive the conditional variance of the estimator

Reference no: EM131250978

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