Hello I would like to check the answer for this question.

Thanks a lot.

Consider the simple location parameter model, meaning a model including only a constant:

Yt = + t , (t = 1, . . . , T) Assume that the full ideal conditions are fulfilled.

a) Derive the least squares estimator for . 5 marks

b) Show that the total sum of squares (SST) is identical to the sum of squared residuals (SSR). 4 marks

c) What does this imply for the value of R2 ? 2 marks d) Derive the t-statistics for the null hypothesis = 0

d) Derive the t-statistics for the null hypothesis = 0.