Consider the multiple regression model yi xi1b1 xi2b2 xi3b3 ei with the nine observations on yi, xi1, xi2 and xi3 given

Consider the multiple regression model yi ¼ xi1b1 þ xi2b2 þ xi3b3 þ ei with the nine observations on yi, xi1, xi2 and xi3 given in Table 5.5.

Use a hand calculator to answer the following questions:

(a) Calculate the observations in terms of deviations from their means. That is, find x

i2 ¼ xi2 x2; x i3 ¼ xi3 x3; and y i ¼ yi y:

(b) Calculate
y i x i2,
x2 i2 ,
y i x i3,
x i2x i3, and
x2 i3 .

(c) Use the expressions in Appendix 5A to find least squares estimates b1, b2, and b3.