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Unbiased estimator of the error variance

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Problem Set 1: Unbiased Estimator of the Error Variance

This assignment will guide you through the derivations needed to determine what is a unbiased estimator of the error variance in the context of a univariate linear regression. This assignment may be quite challenging.

Consider the univariate linear regression mode

yt = α + βxt + ut, t = 1,...., T.

Attachment:- Assignment_1 (1).pdf

Reference no: EM13833952

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