Question: Question 2. A linear regression model is given by where &; is the error term with E(&;) = 0 and Var(;) = for all

Question 2. A linear regression model is given by where &; is

Question 2. A linear regression model is given by where &; is the error term with E(&;) = 0 and Var(;) = for all i = 1, .., n. The model can be expressed as where Yi = Bo + Bixi + B2x2++ Ppript&, i=1,,n Find E(B) and Var(B). Y = X12 -0-30-0 ,X = 1 1 Y = XB + 1 Derive the OLS estimator of , say , using the following objective function: = L(B) = arg min ||Y - XB|| and

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