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Question 3 (16 points) All the parts within this question have equal weight. Censider the following regression model K: = n +5135: + Uz' Ni

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Question 3 (16 points) All the parts within this question have equal weight. Censider the following regression model K: = n +5135: + Uz' Ni = 1$---1n with X:- E {0, 1} and Hg independent of X,- and E[U,-] = D. (:1) Consider the following estimators for u and ,61: 5'0 = nil122% and E1 = w _ ,3} Are they consistent estimators of g and 31 reap? Explain your answer. (h) Compute the OLE estimators and denote them as fig. and 31. Is it true that 30 = n and 31 = 31? Explain your

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