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Unformatted text preview: + = 3 2 1 3 2 1 3 2 1 X X X Y Y Y where Y 3 and X 2 are unobserved. The i are independently distributed N (0, 2 I) and the X i are nonstochastic. For each of the following sets of data derive the ordinary least squares (OLS) estimator of and determine whether it is biased or unbiased. Be precise what assumptions are necessary for your conclusion to be valid. a. (10 pts) OLS only on the complete observations for Y and X (that is, Y 1 and X 1 ) b. (10 pts) OLS of 2 1 Y Y on 2 1 X X where X 2 is replaced by a null matrix. 1 Please submit your assignment in the box on the 8 th floor of Tory (Room 8-14). If the office is closed, slide the assignment under the door of my office (Tory 7-26)....
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This note was uploaded on 11/30/2010 for the course ECON 598 taught by Professor Verabrenčič during the Fall '10 term at University of Alberta.
- Fall '10