3. A researcher is considering a simple linear model without a constant term:
where 6: is a random error term, e ~ N(0,σ2) and cov
= 0. The equation
estimated is given by:
มิ = Ba.,
where
is the ordinary least squares (OLS) estimator of B1 and
is the fitted
value of y.
(a)Derive the OLS estimator
.