This assignment will guide you through the derivations

Question

Problem Set 1: Unbiased Estimator of the Error Variance

This assignment will guide you through the derivations needed to determine what is a unbiased estimator of the error variance in the context of a univariate linear regression. This assignment may be quite challenging.

Consider the univariate linear regression mode

y_t = α + βx_t + u_t, t = 1,...., T.

Attachment:- Assignment_1 (1).pdf