In the Multiple Regression Model The OLS Estimators Are Obtained by Minimizing the Sum of =

question 8

Multiple Choice

In the multiple regression model $Y _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { 1 i } + \beta _ { 2 } X _ { 2 i } + \ldots + \beta _ { k } X _ { k i } + u _ { i } , i = 1 , \ldots , n$
the OLS estimators are obtained by minimizing the sum of

• A) squared mistakes in \(\sum _ { i = 1 } ^ { n } \left( Y _ { i } - b _ { 0 } - b _ { 1 } X _ { 1 i } - \ldots - b _ { k } X _ { k i } \right) ^ { 2 }\)
• B) squared mistakes in \(\sum _ { i = 1 } ^ { n } \left( Y _ { i } - b _ { 0 } - b _ { 1 } X _ { 1 i } - \ldots - b _ { k } X _ { k i } - u _ { i } \right) ^ { 2 }\)
• C) absolute mistakes in \(\sum _ { i = 1 } ^ { n } \left| \left( Y _ { i } - b _ { 0 } - b _ { 1 } X _ { 1 i } - \ldots - b _ { k } X _ { k i } \right) \right|\)
• D) squared mistakes in \(\sum _ { i = 1 } ^ { n } \left( Y _ { i } - b _ { 0 } - b _ { 1 } X _ { i } \right) ^ { 2 }\)