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Problem 3. (Regression without intercept) Suppose you are given the model: Y = Xi + ui, E[u|X] = 0. A) Derive the OLS estimator
Problem 3. (Regression without intercept) Suppose you are given the model: Y = Xi + ui, E[u|X] = 0. A) Derive the OLS estimator B. B) After you estimate , you can obtain the residual = Y Xi. Does - 0? Explain why and show = your derivation.
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