QUESTION DESCRIPTION

2.1) What are two basic estimator properties defining them as “high quality“ estimators?

2.2) List 3 basic assumptions providing high quality of the OLS estimators. Provide both wording and mathematical formulation.

2.3) How enlargement of the spread of Xi would affect the variance of β1 ? Explain.

2.4) How enlargement of the spread of error terms would affect the variance of β1? Explain.