Consider the set of hypothetical data in Table 10.10. Suppose you want to ?t the model to the data.
Yi = β1 + β2 X2i + β3 X3i + ui
a. Can you estimate the three unknowns? Why or why not?
b. If not, what linear functions of these parameters, the estimable func- tions, can you estimate? Show the necessary calculations.
table 10.10
| Y |
X2 |
X3 |
| -10 |
1 |
1 |
| -8 |
2 |
3 |
| -6 |
3 |
5 |
| -4 |
4 |
7 |
| -2 |
5 |
9 |
| 0 |
6 |
11 |
| 2 |
7 |
13 |
| 4 |
8 |
15 |
| 6 |
9 |
17 |
| 8 |
10 |
19 |
| 10 |
11 |
21 |