The following code chunk generates a data set of size n of realizations of the random variables u , x and y. Throughout the exercise, do not modify the set.seed(123) line. set.seed (123) n

The following code chunk generates a data set of size n of realizations of the random variables u , x and y. Throughout the exercise, do not<br>modify the set.seed(123) line.<br>set.seed (123)<br>n <- 20<br>u <- rnorm(n)<br>X <- rnorm(n, mean = 10, sd = 0.5)<br>beta_0 <- 5<br>beta_1 <- 10<br>y <- beta_0 + beta_1*x + u<br>(a.)<br>Compute the OLS estimates of Bo and B1. Call them beta0_hat and beta1_hat respectively. (2 points)<br>Answer:<br># Answer here<br>

Extracted text: The following code chunk generates a data set of size n of realizations of the random variables u , x and y. Throughout the exercise, do not modify the set.seed(123) line. set.seed (123) n <- 20="" u=""><- rnorm(n)="" x=""><- rnorm(n,="" mean="10," sd="0.5)" beta_0=""><- 5="" beta_1=""><- 10="" y=""><- beta_0="" +="" beta_1*x="" +="" u="" (a.)="" compute="" the="" ols="" estimates="" of="" bo="" and="" b1.="" call="" them="" beta0_hat="" and="" beta1_hat="" respectively.="" (2="" points)="" answer:="" #="" answer="">

Jun 10, 2022

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The following code chunk generates a data set of size n of realizations of the random variables u , x and y. Throughout the exercise, do not modify the set.seed(123) line. set.seed (123) n

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