Question: Consider the following linear regression model: y t = 0 + 1 x 1t + 2 x 2t + 3 x 3t + u t

Consider the following linear regression model:

yt= 0+ 1x1t+ 2x2t+ 3x3t+ ut

a. Derive the normal equations using OLS method.

b. Show that P() = 0 using the normal eqn.s derived in part a.

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