Description

1. For the multiple linear regression estimator, show that the matrix H is (i) symmetric; and (ii) idempotent. 

2. Consider the multiple linear regression model with two independent variables,

a. Compute the covariance for the least squares regression estimators. That is, find V (ˆ). 

b. Using the above data, find the estimate of V (ˆ). 

c. What is the variance for the 1st and 3rd residuals (hint: read section 4.2.2).? 

d. What is the covariance between the first and third residual?