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Consider the simple two-variable linear regression model Yi = β1 + β2Xi + ei, with unknown parameters β1 and β2. e is the unobserved random error term. The corresponding OLS regression equation for the above model is:, where and are OLS estimators of β1 and β2.respectively, and is the OLS residual. Given this information, what is the Ordinary Least Squares Estimation Criterion?

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MCQs on Econometrics, which is the use of statistical methods to develop theories or test existing hypotheses in economics or finance. 
 


Consider the simple two-variable linear regression model Y<sub>i </sub>= β<sub>1</sub> + β<sub>2</sub>X<sub>i </sub>+ e<sub>i</sub>, with unknown parameters β<sub>1</sub> and β<sub>2</sub>. e is the unobserved random error term. The corresponding OLS regression equation for the above model is:<br><img src='https://www.fatskills.com/images2/GradExams/446138CE-D5DC-48E4-AD2C-14E54A7C65D8.png' height='25' width='165'/>, where<br><img src='https://www.fatskills.com/images2/GradExams/57C01CC3-8D95-4A12-8853-E6D159C4C84D.png' height='25' width='17'/> and<br><img src='https://www.fatskills.com/images2/GradExams/552E2080-E942-40FF-B941-F8DCA0224445.png' height='25' width='18'/> are OLS estimators of β<sub>1</sub> and β<sub>2</sub>.respectively, and<br><img src='https://www.fatskills.com/images2/GradExams/00D39268-52E7-43D4-BEFE-F8EE68901500.png' height='18' width='15'/> is the OLS residual. Given this information, what is the Ordinary Least Squares Estimation Criterion?





 
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