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(2) Consider the following univariate regression model: Y₁ = B₁ + B₁ D₁ + Uj, where D₁ = 1 or 0. Then show that the least squares estimator of ß₁ takes the follow- ing form: Σ²₁Y;D; n Σ₁₁ Di Σ²₁Y;(1 – D;) Σ(1-D;)

(2) Consider the following univariate regression model: Y₁ = B₁ + B₁ D₁ + Uj, where D₁ = 1 or 0. Then show that the least squares estimator of ß₁ takes the follow- ing form: Σ²₁Y;D; n Σ₁₁ Di Σ²₁Y;(1 – D;) Σ(1-D;)

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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(2) Consider the following univariate regression model: Y; = Bo+ B1D; + U;, where D; = 1 or 0. Then show that the least squares estimator of ß, takes the follow- ing form: E, Y;(1– D;) (1– D;) * i=1 vi=1 Zi=1
Transcribed Image Text:(2) Consider the following univariate regression model: Y; = Bo+ B1D; + U;, where D; = 1 or 0. Then show that the least squares estimator of ß, takes the follow- ing form: E, Y;(1– D;) (1– D;) * i=1 vi=1 Zi=1
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