Suppose that I have an independent random sample of 42 people, where I ask them about their wages and…

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Suppose that I have an independent random sample of 42 people, where I ask them about

their wages and years of experience. In my sample, the odd numbered people (i.e. the 1st,

3rd, 5th etc people I sampled) have the following error term distribution ~ N(0, 2) and

the even numbered people I sampled (i.e. the 2nd, 4th, 6th, etc people I sampled) have their

error term distributed as e,~ N(0.2.5). Suppose that I want to estimate the population

model Wages, Bo + B ln(Experience,) + s. If we have sample variation in the r’s and

EleX] Ele] = 0, do you anticipate that I will be able to estimate 8o and Var (Bo) without

bias? Why or why not?

Expert Answer:

Answer rating: 100% (QA)

SOLUTION No I do not anticipate that you will be able to estimate hat beta 0 and Var Bo without bias

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