Linear Modelingmedium
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The variance of the OLS intercept estimator is given by Var(β^0)=σ2[1n+xˉ2(xixˉ)2]Var(\hat{\beta}_0) = \sigma^2 \left[ \frac{1}{n} + \frac{\bar{x}^2}{\sum (x_i - \bar{x})^2} \right]. Under what condition is the variance of the intercept estimator minimized, assuming the sample size nn and the spread of xx are fixed?