Question

You are given the following model of a data sampling process:
y =  B1 + B2X + u
where each element of the vector e is independently and identically distributed. Your empirical data is given by:
y = [9 6 8 10 9] and X = [2 1 2 2 1]'
i) show that the DSP satisfy the assumptions of the CLRM
ii) Assume that you have estimated this model by OLS ignoring any possible problems that there might be. What
are your estimates of b?
iii) What is the covariance matrix of the OLS estimators B^   given that STANDARD DEV2 = 13 ?
iv) Discuss the statistical properties of the OLS estimator for this DSP.