Suppose that a computer glitch causes you to lose all the observations for which . Will OLS still provide an unbiased estimator of if you estimate Model 1 using the remaining data? Explain.

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Q1.2   (2 Points)
Suppose that a computer glitch causes you to lose all the observations for which . Will OLS still provide an unbiased
estimator of if you estimate Model 1 using the remaining data? Explain.

Q1.3  (2 Points)
Suppose that a computer glitch causes you to lose all the observations for which household size is greater than 6. Will OLS still provide an unbiased estimator of if you estimate Model 1 using the remaining data? Explain.

Q1.4  (2 Points)
Suppose that, contrary to our assumption above, our data was not generated as a random sample from the population. Instead, data was collected by issuing a population-wide voluntary survey that consumption will OLS still provide an unbiased estimator of if you estimate Model 1? Explain.

Q2 Electricity Consumption and Temperature (10 Points)

You are interested in whether the daily average temperature is a good predictor of electricty consumption. Specifically, you would like to estimate the following population regression model:

Model 1:
where is daily electricity consumption in day and is the average daily temperature.
You have data on the daily amount of electricity consumed over the summer in a single randomly chosen house in California.