(Requires Appendix Material)In Deriving the OLS Estimator,you Minimize the Sum

question 35

Essay

(Requires Appendix material)In deriving the OLS estimator,you minimize the sum of squared residuals with respect to the two parameters 0 and 1.The resulting two equations imply two restrictions that OLS places on the data,namely that and .Show that you get the same formula for the regression slope and the intercept if you impose these two conditions on the sample regression function.

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Definitions:

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, calculated as (Cash + Marketable Securities + Receivables) / Current Liabilities.

Increased

This term denotes a situation or quantity that has become larger or greater in size, amount, number, or degree.

Direction

In finance, it refers to the trend or movement of market prices or interest rates.

Profit Margin

A financial metric that shows the percentage of revenue that exceeds the costs associated with making or buying the goods or services sold.