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2. Show that the estimates : = 1.572 and B2 = 1.357 used in the first experiment of Table 3.1 are in fact the OLS

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2. Show that the estimates : = 1.572 and B2 = 1.357 used in the first experiment of Table 3.1 are in fact the OLS estimators. Y = 28/4 = 7 X = 16/4 = 4 X1=x. x= 1 - 4=-3 y1=Y.Y = 4-7 =-3 Y X 9 9 5 0 0 0 7 N H 12 4 10 CY =28 EX = 16 Ex ' = 14 Ex y1=19 1 = 1,375 BZ B = Y - BX 1,375 . 4 =7- =7 - 5,428 = 1,572 A = Y - B X 1,375 . 4 =7 - = 7 - 5,428 = 1,572

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