ECO 321 Fall 2016 Homework 5 Due December 5 by 5 pm Cut and paste at the end of your submission the R code you have used in problem 2 to show your work. 1. Consider the simple regression model: yi = Bo + Bixi + ui, for i = 1, . .., n, with E(u;|x;) + 0 and let z be a dummy instrumental variable for x, such that we can write: Ti = To + mizi + Vi, with E(ui|zi) = 0 and E(vi|zi) = 0. (a) Use the result in HW2, to show that: io = To, and i1 = T1 - To, where To and T1 are the sample means of x for z equal to 0 and 1 respectively