Problem 3: Generate a covariate matrix X of dimension n X k, where n = 250 and k = 4. The rst column in X should be a column of ones and the other three columns can be generated from a relatively diffuse normal or uniform distribution. Let [3 = (0.5,0.75,1,1.25)' and let 02 = 1. Simulate y from the model :9; = X + 5, where 5 N N (0, 021,1). Estimate 6 by ordinary least squares and report BOLS and the standard errors in a table. [Hint: the standard errors are computed by taking the square root of the main diagonal of s2 (X 'X )'1, where s2 is computed as discussed in class] Also submit your computer code (this should not take more than 20 lines)