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02 Q2. (5 points) Consider the conditional variance of OLS estimator B, in SLR, Et=1(xi -x) 2 or SSTx We have proved in class that
02 Q2. (5 points) Consider the conditional variance of OLS estimator B, in SLR, Et=1(xi -x) 2 or SSTx We have proved in class that , is BLUE under Gauss Markov assumptions. Now let us investigate whether , is consistent. For it to be consistent, ET-1(xi - x) must have an upward trend as sample size n T. Notation for this question: In order to consider SSTx or Et-,(xi - x)2 at different sample sizes, let x for a sample of size n be x = = En-, Xi, and n the sum of squared total deviations of x from its own mean in a sample of size n be SSTY = EL-1(xi - x7)2 Hence, starting with a sample of size n, if we add one more observation to the sample, xn and SSTn+1 become - Enti n+ 1 List Xi and Er (xi - xn+1) respectively. Is OLS estimator consistent, i.e. is Ef-1(xi - xn)?
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