Please do what you can do, no problem if it's not complete

answer. Consider the following regression model: yi = Bo + ui where we assume that E[ui] = 0. You have a random sample of N independent observations y1,...,yN from a population satisfying this model. (a)[2 points] What is the expression for Bo that minimizes the sum of the squared residuals? Write and solve the first order condition of the minimization problem to be solved. (b)[2 points] Calculate SCE and R2 for this model and justify your calculations. (c) [1 point] Please use the CHARITY database to estimate the following model: gifti =Bo +ui Where gift is the dollar value of a donation given to charity. Report the table of results generated by Stata for this regression. Are your answers to (a) and (b) consistent with these results? |