Statistics: Running Simulations for Five Methods Given a linear model Y=β0∗+X∗⊤β∗+ε, ε∼N (0,σ∗2). The summation ϵ is an independent and identically distributed or an iid with normal random variables having a mean of 0 and a variance of σ2. Arguably, this model comprises of three fixed parameters that can be estimated: β0, β1, and σ2 unknown constants. In the above linear model, there is a […]
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