% Monte Carlo Experiment for the Classical Assumption: E(eps|X)=0

% Parameters and X matrix
clc;
n = 100;
m = 1000;
x = (1:1:n)';
beta0 = 1;
beta1 = 1;

% Loop to Simulate Data and Calculate OLS Estimates
b = zeros(m,2);
for i = (1:1:m);
    beta = [beta0;beta1];
    X = [ones(n,1) x];
    y = X*beta + rand(n,1);    
    b(i,:) = (inv(X'*X)*(X'*y))';
end;

% Graph Sampling Distributions
subplot(2,1,1);
hist(b(:,1),100);
subplot(2,1,2);
hist(b(:,2),100);