Consider the linear model y = XB+u with classical assumptions (A1)-(A5) being satisfied. Let 1 1 2 X 1 n (a) Prove that
Posted: Mon Nov 15, 2021 10:08 am
Consider the linear model y = XB+u with classical assumptions (A1)-(A5) being satisfied. Let 1 1 2 X 1 n (a) Prove that X'X does not converge to a positive definite matrix. (b) Show that (X'X)-1 +0. What are the implications for OLS?