Consider the linear regression model
Yi = BXi+ Ui
i = 1,2 .....5
Xi = 2i
Yi = [1 2 3 3 4 ] ' (i.e a 5x1 vector)
and Sigma ^2 = 1
Compute the OLS Estimate of B .
Can you work it out slowly, step by step, as I am having a hard time doing the problems in the book, and need a sample to look back at.© BrainMass Inc. brainmass.com October 5, 2022, 1:40 am ad1c9bdddf
Please see the attached file.
The given model can be written in matrix form as
where Y= [1 2 3 3 4]' and X= [2 4 6 8 10]' and is a 1x1 vector (scalar), since it is given that Y¬¬i = ith element of the vector Y and Xi = 2*i , i = 1,2,3,4,5
Now Y and X are 5x1 vectors and , ui is ...
The solution explains how ordinary least square estimator is found.