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Suppose we have a sample (Xi, Yi), i = 1, . .., n and we estimate the model Y = BotB, Xte via OLS. Let

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Suppose we have a sample (Xi, Yi), i = 1, . .., n and we estimate the model Y = BotB, Xte via OLS. Let X = _ _ _ Xi and let e = _ _tjei. Explain why the sample covariance between the X and e; is zero. That is, show that n (Xi - X)(ei - e) =0. i=1

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