State the ordinary least squares (OLS) estimation criterion.
State the OLS normal equations.
Derive the OLS normal
equations from the OLS estimation criterion.
Perform a test of the null hypothesis H0:β2 = 0
against the alternative hypothesis H1:β2 ≠ 0 at the 1%
significance level ( i.e. for significance level α = 0.01 ). Show
how you calculated the test statistic. State the decision rule you
use, and the inference you would draw from the test. Briefly
explain what...