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Question 3: Show that the assumptiOn, E(ui| Xi) = 0, implies that E(Yi| Xi) = 30 + 51X: Answer: Question 4: a. A linear regression

Question 3: Show that the assumptiOn, E(ui| Xi) = 0, implies that E(Yi| Xi) = 30 + 51X: Answer: Question 4: a. A linear regression yields 31 = 0. Show that r2 = 0. la. A linear regression yields 1'2 = 0. Does this imply that 5'1 = 0

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