WebNov 17, 2015 · The web page says. If cov (e,x) =\= 0, the OLS estimator is inconsistent, i.e. its value does not converge to the true value of the parameter with the sample size. Moreover, the OLS estimator is biased. To me, it is clear that β ^ 1 converges to a value that is not the true value β 1, so that makes it biased. Jan 24, 2024 ·

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