Question: Show that the estimates Î²Ì 1 = 1 . 572 and Î²Ì 2 = 1 . 357 used in the first experiment of Table 3.1

Show that the estimates Î²Ì‚₁= 1.572 and Î²Ì‚₂= 1.357 used in the first experiment of Table 3.1 are in fact the OLS estimators.

Table 3.1

Y2i (6) Y; X¢ (2) ûi (4) ûzi (7) (3) 2.929 7.000 8.357 (5) 1.147 4.000 1.841 5.226 (8) (1) 4 1.071 4 4 5 -2.000 -1.35

Y2i (6) Y; X (2) i (4) zi (7) (3) 2.929 7.000 8.357 (5) 1.147 4.000 1.841 5.226 (8) (1) 4 1.071 4 4 5 -2.000 -1.357 2.286 -2 12 -1 9.714 Sum: 28 0.0 16 12.214 14

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