Question: 1.3 Consider the bivariate regression model: Yi = B1 + B2Xi + ui Verify that the OLS estimators for this model are as follows: 2

1.3 Consider the bivariate regression model: Yi = B1 + B2Xi + ui Verify that the OLS estimators for this model are as follows: 2 2 1 2 2 2ˆ 2 i i i i x y b x b Y bX e n V ¦ ¦ ¦ where 1 2 ( ), ( ), ( ) i i ii ii i x X X y Y Y e Y b bX .

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