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Please help me solve part a till part c in details Thank you Assumptions for Inference. Suppose we are interested in the relationship between the

Please help me solve part a till part c in details Thank you

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Assumptions for Inference. Suppose we are interested in the relationship between the size of the average American's social circle, X , and whether or not they are unemployed, Y. To investigate this relationship we want to estimate the following regression equatiol Y 2 g. +61X +6, IEIE] = E[EX] = To estimate the regression coe'icient parameters we collect a sample of size n, {K,Xt:-' _1. Recall that for valid asymptotic inference on our estimates 130 and 31 we require the following assumptions. Random Sampling, Homoskedasticity, and Rank condition. 0 Random Sampling: Assume that {KXg} are independently and identically distributed from the population of interest. (1'2.ng ch (Y, X ) o Homoskedasticity: Assume that Var(e|X = I) = of for all possible values of :r. 0 Rank Condition: There must be at least two distinct values of X that appear in the population. (a) Suppose we collect our sample by only randomly surveying people on UCLA campus. Which assumption would be violated? (b) Suppose we collect our sample and nd that everyone appears to have exactly one friend. Which assumption would be violated? Why is this a problem when computing the line of best t through our sample? (c) Suppose random sampling, homoskedasticity, and the rank condition are all satised, but it = 10. Why might inferences based on the approximation 3161 ar/ ~ man not be valid

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