Consider the model Yi = β1Xi + ui,where ui = c ei and all of the X's and e's are i.i.d.and distributed N(0,1).
(a)Which of the Extended Least Squares Assumptions are satisfied here? Prove your assertions.
(b)Would an OLS estimator of β1 be efficient here?
(c)How would you estimate β1 by WLS?

Question

Consider the model Yi = β1Xi + ui,where ui = c  ei and all of the X's and e's are i.i.d.and distributed N(0,1).
(a)Which of the Extended Least Squares Assumptions are satisfied here? Prove your assertions.
(b)Would an OLS estimator of β1 be efficient here?
(c)How would you estimate β1 by WLS?

Quizplus · Accepted Answer

The Answer of Consider the model Yi = β1Xi + ui,where ui = c  ei and all of the X's and e's are i.i.d.and distributed N(0,1).
(a)Which of the Extended Least Squares Assumptions are satisfied here? Prove your assertions.
(b)Would an OLS estimator of β1 be efficient here?
(c)How would you estimate β1 by WLS?

Consider the Model Yi = β1Xi + Ui,where Ui =