4. Suppose the model is y₁ = a + Bxi + ei. You have the following data from the problem set 1: i Yi Xi i = 1 3 1 i = 2 5 1 i = 3 7 2 Compute (X'X)-¹ X'Y and show it produces the same estimates of a and ß you found in problem set 1.

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4. Suppose the model is y₁ = a + ßxi + €į. You have the following data from the problem set 1:
i
Xi
i=1||3 1
=
2
i = 3
Yi
357
1
2
Compute (X'X)-¹ X'Y and show it produces the same estimates of a and 3 you found in problem
set 1.
Transcribed Image Text:4. Suppose the model is y₁ = a + ßxi + €į. You have the following data from the problem set 1: i Xi i=1||3 1 = 2 i = 3 Yi 357 1 2 Compute (X'X)-¹ X'Y and show it produces the same estimates of a and 3 you found in problem set 1.
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