Consider the following regression model: yi = β0 + ui
or we suppose that E [ui] = 0. You have a random sample of N independent observations y1, .... yN drawn from a population satisfying this model.
a) what is the expression of β0 which minimizes the sum of squared residuals? Write and solve the first order minimization condition to solve
b) calculate SCE and R ^ 2 for this model by justifying your calculations
Anyone have any answers ?
Thank you for your future answers
or we suppose that E [ui] = 0. You have a random sample of N independent observations y1, .... yN drawn from a population satisfying this model.
a) what is the expression of β0 which minimizes the sum of squared residuals? Write and solve the first order minimization condition to solve
b) calculate SCE and R ^ 2 for this model by justifying your calculations
Anyone have any answers ?
Thank you for your future answers