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You are interested in the relationship between treatment (x) and health status (y) You collect the following data: y X Case 1 8 5 Case

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You are interested in the relationship between treatment (x) and health status (y) You collect the following data: y X Case 1 8 5 Case 2 13 9 Case 3 5 2 1) Use the matrix formula (X'X)"'X'y to estimate the parameters of the model: yi = b1 + bzxi + ei Don't forget that your model includes an intercept term. This means that a vector of Is will be inserted into your data matrix. [Hint: 2.0 0.98.]

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