Derive an expression for the population slope parameter

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Question - Consider a population regression model with no intercept term, or Y = βX + U, and assume E[XU] = 0. Assume also that X and U both have positive, finite variances, and suppose you have an i.i.d. sample of data generated by this model, {yn, xn}n=1N.

(a) Derive an expression for the population slope parameter, β, using the exogeneity assumption above.

(b) Propose an estimator based on the analogy principle, call it β^A.

(c) Derive the Ordinary Least Squares estimator, β^OLS.

Reference no: EM132172233

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