You have a sample of size n = 1 with data y₁ = 2 and £₁ = 1. You are interested in the value of 3 in the regression Y = XB+ u. (Note there is no intercept.) (a) Plot the sum of squared residuals (y₁ - br₁)² as function of b. Use the range #₁ € [−2,5] for your plot, and combine all plots of this exercise in one figure. (Use any software you prefer. Excel is one option.) (b) Show that the least squares estimate of 3 is BOLS = 2.
You have a sample of size n = 1 with data y₁ = 2 and £₁ = 1. You are interested in the value of 3 in the regression Y = XB+ u. (Note there is no intercept.) (a) Plot the sum of squared residuals (y₁ - br₁)² as function of b. Use the range #₁ € [−2,5] for your plot, and combine all plots of this exercise in one figure. (Use any software you prefer. Excel is one option.) (b) Show that the least squares estimate of 3 is BOLS = 2.
Chapter3: Polynomial Functions
Section: Chapter Questions
Problem 18T
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