Question: Take themodel Y X0 11X0 22e with E[Xe] 0. Suppose that 1 is estimated by regressing Y on X1 only. Find the probability

Take themodel Y Æ X0 1¯1ÅX0 2¯2Åe with E[Xe] Æ 0. Suppose that ¯1 is estimated by regressing Y on X1 only. Find the probability limit of this estimator. In general, is it consistent for ¯1? If not, under what conditions is this estimator consistent for ¯1?

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