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A Necessary and Sufficient Condition to Derive the OLS Estimator i=1nui^\sum _ { i = 1 } ^ { n } \hat { u _ { i } }

Question 47

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A necessary and sufficient condition to derive the OLS estimator is that the following two conditions hold: i=1nui^\sum _ { i = 1 } ^ { n } \hat { u _ { i } } = 0 and i=1nu^iXi\sum _ { i = 1 } ^ { n } \hat { u } _ { i } X _ { i } = 0. Show that these conditions imply that i=1nui^Yi\sum _ { i = 1 } ^ { n } \hat { u _ { i } } Y _ { i } = 0.

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