Question: Consider estimating the model yi = 1 + 2xi + ei by OLS. Which of the following will the estimated model satisfy? Show your work.

Consider estimating the model yi = 1 + 2xi + ei by OLS. Which of the following will the estimated model satisfy?

Show your work. (3 points)

(i) yI = yi (ii) y =b1 +b2x(iii) r2 = 1 -[ei 2/(yi-yi )2]

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