Question: Maximum Likelihood Estimation. Given the log-likelihood in (7.17), (a) Derive the first-order conditions for maximization and show that MLE = OLS and that 2 MLE

Maximum Likelihood Estimation. Given the log-likelihood in (7.17),

(a) Derive the first-order conditions for maximization and show that βMLE = βOLS and that

σ2 MLE = RSS/n.

(b) Calculate the second derivatives given in (7.18) and verify that the information matrix reduces to (7.19).

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