Problem based on linear model


Question: Recall the linear model y = Xβ + ε where X is an NxK design matrix (observed 'independent' K variables), Nis the number of observations, K is the number of covariates, y is an N-dimensional vector of observed dependent variable, a is an N-dimensional vector of unobserved random errors, and β is a K-dimensional vector of unknown parameters to be determined from the data The OLS estimator is

β^LS = (X' X)-1 X'y

where β^LS, or b, is the estimator of this linear statistical model, and "≡" stands for definition. Show that this estimator does not exist if the number of observations is smaller than the number of explanatory variables (including the constant): N

In order to make your academic future bright, taking online assistance from Vector Assignment Help service is one of the wisest decisions that a student can have.

Tags: Vector Assignment Help, Vector Homework Help, Vector Coursework, Vector Solved Assignments

Request for Solution File

Ask an Expert for Answer!!
Econometrics: Problem based on linear model
Reference No:- TGS03033175

Expected delivery within 24 Hours