I am studying computer science and enrolled in an econometrics class. As of this I have very basic understanding of the subject. I am trying to figure out the following question but don't know where to start. Could someone please give me an outline of how to calculate the question or even the formulas to use please.

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  • $\begingroup$ for (i): just look up the formulas for calculating the coefficients of a linear model fitted with least squares (ls). The same for (ii) and (iii) but more importantly ask questions and try to understand what is going on. In short: do your homework :). $\endgroup$ – snoram Aug 6 '16 at 15:38