Question: Suppose that X (1,X2,X3) where X3 1 2X2 is a linear function of X2. (a) Show that QX X E X

Suppose that X Æ (1,X2,X3) where X3 Æ ®1 Å®2X2 is a linear function of X2.

(a) Show that QX X Æ E

£

X X0¤

is not invertible.

(b) Use a linear transformation of X to find an expression for the best linear predictor of Y given X.

(Be explicit, do not just use the generalized inverse formula.)

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