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Derive the least squares estimate of ?

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a) Consider the model E(Y|X) = x3 +,3X. Note that here the intercept and slope are forced to be equivalent. Derive the least squares estimate of ? for this model. (Hints: Be careful with signs. Your ?nal answer should resemble other least squares estimates of 5's. You may use any results we have previously derived.)

b) Verify that your estimate of ,8 is unbiased. (Hint: It may make things more clear to simplify the model.)

Reference no: EM132856535

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