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Proving Consistency B=(x1-元/∑(x1-元 =B+n∑(x1-元x((-) plim B,=B,+Cov(x, u / var(x=B because Cov(xi, u)=0 Economics 20- Prof anderson 5Economics 20 - Prof. Anderson 5 Proving Consistency ( ( ) ) ( ( ) ) ( ( ) ) ( ( ) ) ( ) ( ) because ( , ) 0 , ˆ plim ˆ 1 1 1 1 1 1 2 1 1 1 1 1 1 1 2 1 1 1 1 1 = = + = = + − − = − −     − − Cov x u Cov x u Var x n x x u n x x x x y x x i i i i i i b b b b b
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