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Consider the linear regression model $$ Y_{i}=gamma_{0}+gamma_{1}left(x_{i}- bar{x} ight)+epsilon_{i}, $$ where $epsilon_{i}$ is iid and $i=1, ldots, n$. Derive the least squares estimators of $gamma_{0}$
Consider the linear regression model $$ Y_{i}=\gamma_{0}+\gamma_{1}\left(x_{i}- \bar{x} ight)+\epsilon_{i}, $$ where $\epsilon_{i}$ is iid and $i=1, \ldots, n$. Derive the least squares estimators of $\gamma_{0}$ and $\gamma_{1}$ by following the steps below: Write down the sum of squared errors, SSE. Differentiate SSE with respect to $\gamma_{0}$. Next, differentiate SSE with respect to $\gamma_{1}$. Equate both equations to 0 and solve to obtain the estimates. SP.PB. 097
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