Question: I need help with this Linear Algebra problem 8. Denote = 1, 2, 3, .., n, the observations in a sample of size n. Denote

I need help with this Linear Algebra problem

I need help with this Linear Algebra problem 8. Denote = 1,

8. Denote = 1, 2, 3, .., n, the observations in a sample of size n. Denote xx k = 1, 2, ..., K, the variables x whose values have been collected for each observation / Call these the independent variables. The relationship between the independent variables and a variable y (called the dependent variable) for the # observation is: VE 60 + 61Xu + 62X2 + 63X13 + 56 where the 6s denote parameters of interest and & is a random error term. In order to keep the notation compact you rewrite the model in compact matrix notation: (a) Define the 1 x K+1 vector x of independent variables for the generic @ observation. (Hint: the first element is a 1) (b) Define the corresponding vector 6 of parameters. (Hint: take care of conformability) (c) Suppose that the number of observations collected is equal to 3, so that n = 3. Define the n x K+1 data matrix X with the " element * (Hint: the vector x is the (#row) (d) Define the n x 1 vectors y and c. (Hint: y and & are the [ elements) (e) Write down the model in full matrix form. What are the dimensions of the matrix X8? (You now have all the elements. Do not forget the y and e vectors) (f) Multiply X6 and write down (as a vector) all the resulting elements. (g) Write down the model you just obtained in explicit form (that is, by writing down all the elements of the vectors)

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