Discuss the properties of this estimator

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An investigator correctly believes that the relationship between two variables X and Y is given by

Yi = β1 + β2Xi + ui,

Given a sample of n observations, the investigator estimates β2 by calculating it as the average value of Y divided by the average value of X. Discuss the properties of this estimator. What difference would it make if it could be assumed that β1 is equal to 0?

Reference no: EM131132467

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