A2 The Method Of Weighted Least Squares

To illustrate the method, we use the two-variable model Yi = fai + fa2Xi + ui. The unweighted least-squares method minimizes

to obtain the estimates, whereas the weighted least-squares method minimizes the weighted residual sum of squares:

where 1* and 2* are the weighted least-squares estimators and where the weights wi are such that wi =

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Rules Of The Rich And Wealthy

Rules Of The Rich And Wealthy

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