Question: answer all questions with explanation Consider the following data: Assume the following model:y = x] +r . The model does not have an intercept on

answer all questions with explanation

answer all questions with explanation Consider the following data: Assume the following

Consider the following data: Assume the following model:y = x] +r . The model does not have an intercept on purpose. a) [2 marks] Compute the least squares estimate of )5" (by hand). b) [3 marks] By hand, sketch the three vectors y, in? where I: = XI? and )3 is the least squares estimate. c] [1 mark] Using software, show that the software output yields the same least Squares estimate. You can use any software you like: R, Stata, other software. Provide output of the regression command. d] [1 marks] A straight line is dened by two points. In this example there are 2 points. Why are there non-zero residuals

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