QUESTIDN 4 Goneider the followirig Ermar model with random regreaeore: = lmlt + 13213: + Er (3} 1.vhere the errors et ere i. normalit-r distributed:...

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QUESTIDN 4 Goneider the followirig Ermar model with random regreaeore: ti: = filmlt + 13213:: + Er (3} 1.vhere the errors et ere i.i.d. normalit-r distributed: e1 ~ IINEIZIJELt =1I ...,T. The vectors of random regeeeore X1 and X; :aretieifltF the relation:X1 = e+ ng, 1where e and o are constants. Both myeaeore are uncorrelatedwith the error vector e. All variablee in the model, i.e. the dependent variable and the regreeeore have mean I]. {at} Find the oovarianee and correlation between X1 and X2(b) Write the matrix X21? and show that it ie non-invertible. {e} What ia the ooneequenoe of your answer to h] on the GL3 estimationof this model?