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In the Multiple Regression Model Yi = ?0 + ?1X1i ∑i=1n(Yi−b0−b1X1i−…−bkXki)2\sum _ { i = 1 } ^ { n } \left( Y _ { i } - b _ { 0 } - b _ { 1 } X _ { 1 i } - \ldots - b _ { k } X _ { k i } \right) ^ { 2 }

Question 55

Multiple Choice

In the multiple regression model Yi = ?0 + ?1X1i+ ?2 X2i + ... + ?kXki + ui, i = 1,..., n, the OLS estimators are obtained by minimizing the sum of


A) squared mistakes in ∑i=1n(Yi−b0−b1X1i−…−bkXki) 2\sum _ { i = 1 } ^ { n } \left( Y _ { i } - b _ { 0 } - b _ { 1 } X _ { 1 i } - \ldots - b _ { k } X _ { k i } \right) ^ { 2 }
B) squared mistakes in ∑i=1n(Yi−b0−b1X1i−…−bkXki−ui) 2\sum _ { i = 1 } ^ { n } \left( Y _ { i } - b _ { 0 } - b _ { 1 } X _ { 1 i } - \ldots - b _ { k } X _ { k i } - u _ { i } \right) ^ { 2 }
C) absolute mistakes in ∑i=1n∣(Yi−b0−b1X1i−…−bkXki) ∣\sum _ { i = 1 } ^ { n } \left| \left( Y _ { i } - b _ { 0 } - b _ { 1 } X _ { 1 i } - \ldots - b _ { k } X _ { k i } \right) \right|
D) squared mistakes in ∑i=1n(Yi−b0−b1Xi) 2\sum _ { i = 1 } ^ { n } \left( Y _ { i } - b _ { 0 } - b _ { 1 } X _ { i } \right) ^ { 2 }

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