Mathematics · Linear Regression
Let Yi = α + βxi + εi, i = 1, 2, 3, where xi's are fixed covariates, α and β are unknown parameters and εi's are independently and identically distributed normal random variables with mean 0 and variance σ2 > 0. Given the observations xi = (1, 2, 3) and yi = (2.1, 3.9, 6), which of the following statements is true?
- 1The maximum likelihood estimate of α is 0.2.
- 2The least square estimate of β is 1.2.
- 3The least square estimate of α is 0.1.✓
- 4The least square estimate of α is 0.5.
Correct answer
The least square estimate of α is 0.1.
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