ECON 710 Midterm: ECON 710 UW Madison Midterm 2017
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E(xiei) = 0 i(cid:12) + ei variance estimate. with parameter of interest (cid:18) = r0(cid:12) with r k (cid:2) 1. Under what condition does e(cid:12) 1 = b(cid:12) 1 and e(cid:12) 2 = b(cid:12) 2? yi = e(cid:12) 2x2i +ee2i: take a regression model with i. i. d. observations (yi; xi) and scalar xi yi = xi(cid:12) + ei. The parameter of interest is (cid:18) = (cid:12) 2. Under which conditions is b(cid:18) unbiased: take a regression model with i. i. d. observations (yi; xi) and scalar xi yi = xi(cid:12) + ei. E(ei j xi) = 0 (cid:10) = e(cid:0)x2 i(cid:1) i e2 e(cid:10) = b(cid:10) = 1 n i=1 nx nx i=1 x2 i e2 i x2 i ibe2. Let b(cid:12) be the ols estimate of (cid:12) with residuals bei = yi (cid:0) xib(cid:12). Consider the estimates of (cid:10) (a) find the asymptotic distribution of pn(cid:16)e(cid:10) (cid:0) (cid:10)(cid:17) as n !
