Week 2 Flashcards
What is LIE?
What are the 3 assumptions of OLS?
What is the first assumption?
What are the 2 implications of the 1st assumption?
When is X endogenous and when exogenous?
What does covariance of 0 imply and what does it not imply?
What happens when assumption is not satisfied?
What is the second assumption?
What is the 3rd assumption?
What are the 2 roles of the LS assumptions?
What is the sampling distribution of OLS estimator?
Why are beta0 and beta1 random variables/
What is the implicatoion of random variables>
What does it mean when the sample size is small?
What is good/bad news when the sample size is small?
What is the good/bad news when the sample size is large?
What is the proof LIE?
proof that beta1 is unbiased?
Show that assumption 1 implies E(ui)=0
Show that assumption 1 implies Cov(Xi, ui)=0
Show that TSS = ESS + SSR
Show that the sample mean Y^ - is the same as Y^(-^)
Show that beta0 is unbiased estimator
