EXERCISE 1.9 In the model with constant: Yi = Bo +x; + Ei 1. show that y = bo+xb where bo and b are OLS estimators of Bo i . 2. (*) show that vector of residuals e; from the regression if yi on x; satisfies e=y* - X*b where yi = Yi -y, x = x - x 3. (*) show that the least squares normal equations written as X* e* = 0 is satisfied for e*= y* - X*b Hint: X* = X- I'X 4. (*) What is the rellation between estimators from regressions on levels and on deviations from the means? EXERCISE 1.9 In the model with constant: Yi = Bo +x; + Ei 1. show that y = bo+xb where bo and b are OLS estimators of Bo i . 2. (*) show that vector of residuals e; from the regression if yi on x; satisfies e=y* - X*b where yi = Yi -y, x = x - x 3. (*) show that the least squares normal equations written as X* e* = 0 is satisfied for e*= y* - X*b Hint: X* = X- I'X 4. (*) What is the rellation between estimators from regressions on levels and on deviations from the means