oh hi EnumaElish!
I did not study matrix algebra but I do know about the definition of delta coefficient, using the proof for OLS slope coeffecient proof, which we derive it from the differentiation of RSS/b1 and RSS/b2.
Now, I am stuck at this stage where I have proofed delta = cov...
Hi to all
I need to seek help with regard to this question.
Show that the OLS estimator of the dummy coefficient (\delta) in the regression model given by
Y_{i}=\beta_{1} + \deltaD_{i} + \upsilon_{i}
is equal to the difference between the sample mean of the observations for which...