Question: N N N = + y i=1 N i=1 N = + i=1 i=1 i=1 (1.4) Equations (1.4) are called the normal equations. By

N N N = + y i=1 N i=1 N = +

N N N = + y i=1 N i=1 N = + i=1 i=1 i=1 (1.4) Equations (1.4) are called the normal equations. By solving them, the estimators of Bo and B are obtained as ( - )( - ) ( - )2 N B =-x, where x = x; /N and y =) i=1 (1.5) N /. (1.6) i=1

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