# Question: Suppose that we have 10 observations on the response variable

Suppose that we have 10 observations on the response variable, y, and two explanatory variables, x1 and x2, which are given below in matrix form.

a. Compute X’ X, (X’ X)-1, and X’ Y,

b. Compute the least-square estimators of the prediction equation

= 0 + 1x1 + 2x2

a. Compute X’ X, (X’ X)-1, and X’ Y,

b. Compute the least-square estimators of the prediction equation

= 0 + 1x1 + 2x2

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