I’m been stuck on this for days. I’ve made up values for X and have done out the equations so many times and I can’t figure out what is wrong. Can anyone please help? The problem is as follows;
The OLS estimator is written as b =(X’X)^-1 X’y
Explain why the following is incorrect;
b = (X’X)^-1 X’y = X^-1(X’)^-1 X’y = X^-1 y
Thank you in advance!
The OLS estimator is written as b =(X’X)^-1 X’y
Explain why the following is incorrect;
b = (X’X)^-1 X’y = X^-1(X’)^-1 X’y = X^-1 y
Thank you in advance!