Consider the simple linear regression model:

Calculate the moments:

Use the above results to derive the Method of Moments estimators of ^? 0 and ^? 1 ?

8. Consider the simple linear regression model: yi = Bo+ Biri tui, i= 1, ...,n where {yi, mill , are i.i.d., ; are not constant across , and E(u; r; ) = 0. This model gives rise to the following moments: (a) Calculate the moments: E(x;ui) and E(ui) (b) Use the above results to derive the Method of Moments estimators of Bo and B1