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A6 Suppose that you have n i.i.d. observations (yi,xi) that satisfy y.pdf

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A6 Suppose that you have n i.i.d. observations (yi,xi) that satisfy yi=xii with >0. That is, yi is the product of ,xi, and i, where iN(0,1) is independent from xi. (i) (6 points) Find the maximum likelihood estimator of . (ii) (4 points) Find the LM statistic for testing the hypothesis =1. (Hint: LM=S(0;Y,X)2/d2d2logL(0;Y,X) )..

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A6 Suppose that you have n i.i.d. observations (yi,xi) that satisfy yi=xii with >0. That is, yi is the product of ,xi, and i, where iN(0,1) is independent from xi. (i) (6 points) Find the maximum likelihood estimator of . (ii) (4 points) Find the LM statistic for testing the hypothesis =1. (Hint: LM=S(0;Y,X)2/d2d2logL(0;Y,X) ).

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