Question: Take themodel Let b denote the OLS estimator for based on an available sample. (a) Suppose that an observation is in the sample only

Take themodel Y = X'+e e~N(0,02).

Let b¯ denote the OLS estimator for ¯ based on an available sample.

(a) Suppose that an observation is in the sample only if X1 È 0 where X1 is an element of X. Is b¯
consistent for ¯? Obtain an expression for its probability limit.

(b) Suppose that an observation is in the sample only if Y È 0. Is b¯ consistent for b¯? Obtain an expression for its probability limit.

Y = X'+e e~N(0,02).

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