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OLS estimator with given β0

  1. Sep 23, 2014 #1
    1. The problem statement, all variables and given/known data
    ΣiYi = 500; ΣiXi = 150; ΣiYi2 = 17000; ΣiXi2 = 4000; ΣiXiYi = 8000; n = 50.

    β0 = 3. Derive formula for OLS estimator of β1 and find estimate


    2. Relevant equations
    I'm new to OLS and I'm not sure where to go from:

    Σ(Yi - 3 - b1Xi)^2

    I was able to walk through the steps in my class lectures to solve Bhat1 and Bhat0 but am a little confused when β0 is given. Can anyone explain the logical following steps? Thank you!
     
  2. jcsd
  3. Sep 23, 2014 #2

    statdad

    User Avatar
    Homework Helper

    Your dispersion function
    [tex]
    \sum {\left(Y_i - 3 - b_1 x_i\right)^2}
    [/tex]

    is now just a function of one unknown. Use methods of one-variable calculus to minimize it, then use the numerical information provided above to find the specific value
     
  4. Feb 23, 2015 #3
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