Question 4. OLS with two regressors. Consider the following model: yi = Bo+ Bxi + i; i = 1,...,5, where y = (5, 2, 3, 2, -2)T, and x = (3/2, 1, 1/2, -1/2,0). Do this exercise by hand. 5 5 2 1. Find w, viyi,, and J. i=1 i=1 2. Compute the OLS estimate Bo, and 3 for this model. 3. On a graph, plot the data points and fitted regression line y = Bo + Bx. 4. Interpret the parameters Bo, and 3. 5. On your graph in part 3, locate the point of the means (x, y). Discuss what you see.