Unbiasedness of OLS Estimators 1 10 points We showed in the

Unbiasedness of OLS Estimators 1. (10 points). We showed in the notes that the OLS estimators can be written as the sum of the true coefficient and a linear combination of the error terms: b2 = beta2 + sum i = 1 to n aiui b1 = beta 1 + sum i = 1 to n ciui Using this result, prove that OLS estimators are unbiased.

Solution

PROPERTY 2: Unbiasedness of and . 1