Alternative Derivations
In the previous section the least squares estimator was obtained as a value that minimizes the sum of squared residuals of the model. However it is also possible to derive the same estimator from other approaches. In all cases the formula for OLS estimator remains the same: ^β = (X′X)−1X′y, the only difference is in how we interpret this result.
Read more about this topic: Ordinary Least Squares
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