What are the ols normal equations

Reference no: EM13179164

Consider the following simple linear regression model.

$yi = \beta1 + \beta2xi + ei, i = 1,..., n$

PART I: We are trying to find the ordinary least squares (OLS) estimators for 1 and 2 which we will denote as b1 and b2.

(a) Write down the function that you are minimizing.

(b) What are the OLS normal equations (1rst order conditions)?

Reference no: EM13179164

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