6. Consider a simple linear regression model y = XB+ u, where y is an n...
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6. Consider a simple linear regression model y = XB+ u, where y is an n x 1 vector of observations on the dependent variable; X is an n x 2 matrix of observations on the constant regressor and the independent variable; ß is a 2 x 1 vector of unknown parameters; and u is an n x 1 vector of population regression errors. Suppose that in a sample of n = 3 observations, the vector y, the matrix X, and the matrix (X'X)-¹ are given by y = 3 X = 1 -3 and (X'X)-¹ 1 5 = 0.413 L-0.048 -0.0481 0.029 Using this information, compute the OLS estimate of each parameter in B. You must show your working. 6. Consider a simple linear regression model y = XB+ u, where y is an n x 1 vector of observations on the dependent variable; X is an n x 2 matrix of observations on the constant regressor and the independent variable; ß is a 2 x 1 vector of unknown parameters; and u is an n x 1 vector of population regression errors. Suppose that in a sample of n = 3 observations, the vector y, the matrix X, and the matrix (X'X)-¹ are given by y = 3 X = 1 -3 and (X'X)-¹ 1 5 = 0.413 L-0.048 -0.0481 0.029 Using this information, compute the OLS estimate of each parameter in B. You must show your working.
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Answer To compute the OLS estimate of each parameter in B we can use the formula B XXXy G... View the full answer
Related Book For
Applied Statistics And Probability For Engineers
ISBN: 9781118539712
6th Edition
Authors: Douglas C. Montgomery, George C. Runger
Posted Date:
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