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Consider the Model Yi=β1Xi+uiY _ { i } = \beta _ { 1 } X _ { i } + u _ { i }

Question 25

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Consider the model Yi=β1Xi+uiY _ { i } = \beta _ { 1 } X _ { i } + u _ { i } , where ui=cXi2eiu _ { i } = c X _ { i } ^ { 2 } e _ { i } and all of the XX 's and ee 's are i.i.d. and distributed N(0,1)N ( 0,1 ) . (a)Which of the Extended Least Squares Assumptions are satisfied here? Prove your
assertions.

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