Question: Consider the Chapter 2 linear regression model formulas with (y_{t-1}) in place of (x_{t}), for (t=2, ldots, T). a. Provide an exact expression for (b_{1}).

Consider the Chapter 2 linear regression model formulas with \(y_{t-1}\) in place of \(x_{t}\), for \(t=2, \ldots, T\).

a. Provide an exact expression for \(b_{1}\).

b. Provide an exact expression for \(b_{0}\).

c. Show that \(b_{0} \approx \bar{y}\left(1-r_{1}\right)\).

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