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Statement of a problem № m41244

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Consider the linear regression model Yi = β1wi + β2xi + εi for i = 1, . . . , n, where (w1, x1), . . . , (wn, xn) are given pairs of constants and ε1, . . . , εn are i.i.d. random variables, each of which has the normal distribution with mean 0 and variance σ2. Determine explicitly the M.L.E.’s of β1 and β2.




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