Suppose the true model is given by Y = B(U)X +U where U - X and 8(U) = 1 if U >0 and =-1 if U < 0. Suppose you regress Y on X using OLS. Derive the probability limit of the OLS estimator. N(0,1) and independent of
Suppose the true model is given by Y = B(U)X +U where U - X and 8(U) = 1 if U >0 and =-1 if U < 0. Suppose you regress Y on X using OLS. Derive the probability limit of the OLS estimator. N(0,1) and independent of
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Transcribed Image Text:Suppose the true model is given by Y = B(U)X +U where U -
X and 8(U) = 1 if U >0 and =-1 if U < 0. Suppose you regress Y on X using OLS. Derive
the probability limit of the OLS estimator.
N(0,1) and independent of
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