Question: Exercise 9.3 Suppose 1 and 2 are estimable in model (9.0.1). Use the normal equations to find find least squares estimates

Exercise 9.3 Suppose λ 

1β and λ 

2γ are estimable in model (9.0.1). Use the normal equations to find find least squares estimates of λ 1β and λ 

2γ .

Hint: Reparameterize the model as Xβ +Zγ = Xδ +(I−M)Zγ and use the normal equations on the reparameterized model. Note that Xδ = Xβ +MZγ .

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