1. In deriving the least-squares estimator $\hat{\beta_1}$, we first take the partial derivative of SSE with respect to $\hat{\beta_1}$. The partial derivative of the SSE is (select one answer) A. $-2 \left( \sum_{i=1}^n y_i - \hat{\beta_1} \sum_{i=1}^n x_i \right)$ B. $-2 \left( \sum_{i=1}^n x_iy_i - \hat{\beta_1} \sum_{i=1}^n x_i^2 \right)$ C. $2 \sum_{i=1}^n (\hat{\beta_1} x_i^2 - x_iy_i)$ D. $2 \sum_{i=1}^n (\hat{\beta_1} x_i^2 - x_i^2 y_i^2)$ 2. $\hat{\beta_1}$ is the least-squares estimator of the parameter $\beta_1$ and can be expressed as A. $\frac{\sum_{i=1}^n x_iy_i}{\sum_{i=1}^n x_i^2}$ B. $\frac{\sum_{i=1}^n (x_i - \bar{x})(y_i - \bar{y})}{\sum_{i=1}^n (x_i - \bar{x})^2}$ C. $\sum_{i=1}^n (x_i - \bar{x})(y_i - \bar{y})$ D. $\sum_{i=1}^n x_iy_i - \frac{1}{n} \sum_{i=1}^n x_i \sum_{i=1}^n y_i$ 3. Is $\hat{\beta_1}$ an unbiased estimator of the parameter $\beta_1$? Which of the following statements is correct. A. $\hat{\beta_1}$ is an unbiased estimator of the parameter $\beta_1$ and $E(\hat{\beta_1}) = \frac{\sum_{i=1}^n x_i E(Y)}{\sum_{i=1}^n x_i^2}$ B. $\hat{\beta_1}$ is an unbiased estimator of the parameter $\beta_1$ and $E(\hat{\beta_1}) = \frac{\sum_{i=1}^n x_i^2 E(Y)}{\sum_{i=1}^n x_i^2}$ C. $\hat{\beta_1}$ is not an unbiased estimator of the parameter $\beta_1$ and $E(\hat{\beta_1}) = \frac{\sum_{i=1}^n \beta_1 x_i^2}{\sum_{i=1}^n x_i^2}$ D. $\hat{\beta_1}$ is not an unbiased estimator of the parameter $\beta_1$ and $E(\hat{\beta_1}) = \frac{\sum_{i=1}^n \beta_1 x_i^2}{\sum_{i=1}^n x_i^2}$
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The SSE is given by: $$SSE = \sum_{i=1}^n (y_i - \hat{y_i})^2$$ where $\hat{y_i}$ is the predicted value of $y_i$ based on the linear regression model. Show more…
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