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Please answer a and b with all steps necessary. Thank you Suppose you want to estimate the following model using the OLE method: = 30

Please answer a and b with all steps necessary. Thank you

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Suppose you want to estimate the following model using the OLE method: = 30 + wwm + 59: (7") where 11.: changes the measurement units of the observed variable. For example, it could change a variable which measures the number of hours worked per year into a variable measuring the number of weeks worked per year. Assume that all Gauss-Markov assumptions are satised. a] ICompare the expression of the OLE estimator from estimating equation ('i'] {i. e. w) to the OLE estimator {,31] obtained from regressing = #3:: + #31111 + Ei- (3} b} Compute Vardw |K)

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