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Consider the model: y = 2x+ e. It satisfies all our assumptions. The following estimator of 2 is being proposed: b2 = kyi where the
Consider the model: y = 2x+ e. It satisfies all our assumptions. The following estimator of 2 is being proposed: b2 = kyi where the constant k = (1/Nx) 1.
Is this estimator unbiased? Demonstrate.
2. Find the variance of this estimator.
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