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b) Consider the model y =ax,+u; t=1,2,...,T where E(u)=0; E(u})=0*x?; E(u.u.)=0 if s+t, for all s and t. x, is an observed non-random variable The

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b) Consider the model y =ax,+u; t=1,2,...,T where E(u)=0; E(u})=0*x?; E(u.u.)=0 if s+t, for all s and t. x, is an observed non-random variable The density function of u, is f(u) = (2nox?) exp 1 20 x Derive the maximum likelihood estimators of a and o. (10 points) b) Consider the model y =ax,+u; t=1,2,...,T where E(u)=0; E(u})=0*x?; E(u.u.)=0 if s+t, for all s and t. x, is an observed non-random variable The density function of u, is f(u) = (2nox?) exp 1 20 x Derive the maximum likelihood estimators of a and o. (10 points)

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