Anna opens two savings accounts at the beginning of a year. She deposits
$5,000 in an account that earns
2% interest each year. She deposits
$10,000 in a second account that earns
2.5% interest each year. If she makes no
withdrawals or deposits, what will be
the sum of the interest she earns from
her first account (a) and second account
(b) by the end of the year?
2
b 2.5
100
100
a
II
a =
b=
combined (a + b) =

Consider the linear model for a two-stage nested design with b nested in a as given below. yijk=\small \mu + \small \taui + \small \betaj(i) + \small \varepsilon(ij)k , for i=1,; j= ; k=1, assumption: \small \varepsilon(ij)k ~ iid n (0, \small \sigma2) ; \small \taui ~ iid n(0, \small \sigmat2 ); \tiny \sum_{j=1}^{b} \small \betaj(i) =0; \small \varepsilon(ij)k and \small \taui are independent. using only the given information, derive the least square estimator of \small \betaj(i) using the appropriate constraints (sum to zero constraints) and derive e(msb(a) ).