Simple Linear Regression Model
The linear regression model is typically estimated by the ordinary least squares (OLS) technique. The model in general form is $$Y_i=x’_i\beta + \varepsilon, \quad\quad i=1,2,\cdots,n$$ In matrix notation $$y=X\beta + \varepsilon,$$ where $y$ is a vector of order $n\times 1$ …