Suppose a sample of size n = 2 consists of the observations (x1, y1) = (1, 1) and (x2, y2) = (2, 1). Calculate the estimates of β and σ 2 from part (1) for these data.

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In some situations where the regression model is useful, it is known that the mean of Y when X = 0 is equal to 0, that is, Yi = βxi +ǫi where ǫi for i = 1, 2, . . . , n are independent and N (0, σ2 ).

 

Suppose a sample of size n = 2 consists of the observations (x1, y1) = (1, 1) and (x2, y2) = (2, 1). Calculate the estimates of β and σ 2 from part (1) for these data.

 

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