5. A simple linear regression model with zero intercept term is specified as: Y, = Bx, +E, where ɛ is the error term This is a simple linear regression model through the origin and the OLS estimator of its slope is given as follows: ΣΧ

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Assuming that this simple linear regression model fulfills all the classical assumptions we discussed in class, please derive the variance of the OLS estimator of its slope given above. [Hint: Use the same technique we used in class to derive the variance for the OLS estimator of the slope for a model with non-zero intercept.]

5. A simple linear regression model with zero intercept term is specified as:
y; = Bix, +E,
where ɛ is the error term
This is a simple linear regression model through the origin and the OLS estimator of its slope
is given as follows:
EX.Y,
ΣΧ
Transcribed Image Text:5. A simple linear regression model with zero intercept term is specified as: y; = Bix, +E, where ɛ is the error term This is a simple linear regression model through the origin and the OLS estimator of its slope is given as follows: EX.Y, ΣΧ
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