Chapter 3 Multiple Linear Regression Model The linear model
The normal equation is () 0 '' S X Xb X y where the following result is used: Result: If f 'zZAZ is a quadratic form, Z is a m 1 vector and A is any mm symmetric matrix then Fz Az() 2 z . Since it is assumed that rank()X k (full rank), then X 'X is a positive definite and unique solution of the normal equation is bXX Xy (') ' 1
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