Y= b0 + b1X1 + b2X21+ b3X2
whereYis the expected sales of office supplies for a large retail distributor of office supplies,X1 is the total disposable income of residents within 5 miles of the store, andX2 is the total number of persons employed in information-based businesses within 5 miles of the store. Recent work by a national consulting firm has concluded that the coefficients in the model must have the following restriction:
b1 + b2 = 2
Describe how you would estimate the model coefficients using least squares.
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