Problema consider the classical linear regression model, Ask an Expert

Economics

Problem:

(a) Consider the Classical Linear Regression Model (CLRM)

Y_i = α + βX_i + ε_i

(i) Using the method of ordinary least squares (OLS), derive an expression for α and β.

(ii) Prove that the OLS estimators derived in (a) above are unbiased.

(b) Illustrate clearly the concept of dummy variable trap.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9585637

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