The following code chunk generates a data set of size n of realizations of the random variables u, x and y. Throughout the exercise, do not modify the set.seed(123) line. set.seed (123) n <- 20 u <- rnorm(n) X <- rnorm(n, mean = 10, sd = 0.5) beta_0 <- 5 beta_1 <- 10 y <- beta_0 + beta_1*x + u

The following code chunk generates a data set of size n of realizations of the random variables u, x and y. Throughout the exercise, do not modify the set.seed(123) line. set.seed (123) n <- 20 u <- rnorm(n) X <- rnorm(n, mean = 10, sd = 0.5) beta_0 <- 5 beta_1 <- 10 y <- beta_0 + beta_1*x + u

Database System Concepts

7th Edition

ISBN:9780078022159

Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan

Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan

Chapter1: Introduction

Section: Chapter Questions

Problem 1PE

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The complexity of the algorithm model emphasizes the potential method. This method is useful for examining a data structure's amortized time and space complexity.

Question

The following code chunk generates a data set of size n of realizations of the random variables u , x and y. Throughout the exercise, do not
modify the set.seed(123) line.
set.seed (123)
n <- 20
u <- rnorm(n)
X <- rnorm(n, mean = 10, sd = 0.5)
beta_0 <- 5
beta_1 <- 10
y <- beta_0 + beta_1*x + u
(a.)
Compute the OLS estimates of Bo and B1. Call them beta0_hat and beta1_hat respectively. (2 points)
Answer:
# Answer here

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