Questions are added as a picture from another file since there didn't seem to be a way to type some characteristics into this text field. A classmate is interested in estimating the variance of the error term in Yi = β0 + β1Xi + ui.a.) found on attab.) found on attachment a) Suppose that she uses the estimator from the second-stage regression of TSLS:1ô²2 ·Σ" (Y, – BISLS – BISLS Ŷ₁)², where Â, is the fitted value from the first-stageai=1n- 2regression. Is this estimator consistent? (For the purposes of this question suppose that thesample is very large and the TSLS estimators are essentially identical to ßo and B₁).1b) Is ô²=¹" (Y,-ÂTSLS – BTSLSX,) consistent?Σ-i=1n-2

Given Information: Consider the given model: yi=β0+β1xi+ui The estimator from the second-stage…

a) Suppose that she uses the estimator from the second-stage regression of TSLS: 1 n Σ" (Y, – BTSLS – BTSLS Ŷ, )², where , is the fitted value from the first-stage - di=1 n-2 regression. Is this estimator consistent? (For the purposes of this question suppose that the sample is very large and the TSLS estimators are essentially identical to Bo and B₁). 1 n-2 b) Is o = n Σ" (Y₁ - BTSLS - BTSLS X.) consistent? i=1

a) Suppose that she uses the estimator from the second-stage regression of TSLS: 1 n Σ" (Y, – BTSLS – BTSLS Ŷ, )², where , is the fitted value from the first-stage - di=1 n-2 regression. Is this estimator consistent? (For the purposes of this question suppose that the sample is very large and the TSLS estimators are essentially identical to Bo and B₁). 1 n-2 b) Is o = n Σ" (Y₁ - BTSLS - BTSLS X.) consistent? i=1

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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