student GPA (y) ACT (x) y-avg(y) x-avg(x) (y-avg(y))*(x-avg(x)) (x-avg(x))^2 estimated y residual n sum(y) sum(x) sum sum avg(y) avg(x) estimated beta_0 beta_1 ##### Sheet/List 2 ##### student GPA (y) ACT (x) vector y matrix X X' estimated y residual X'X "Hint for Windows: Expand to the size of the matrix & Press F2, then Ctrl+Shift+Enter (use ""MMULT"")" "Hint for Mac: Expand to the size of the matrix & press CONTROL+U, and then press ⌘+RETURN" (X'X)^(-1) "Hint for Windows: Expand to the size of the matrix & Press F2, then Ctrl+Shift+Enter (use ""MINVERSE"")" "Hint for Mac: Expand to the size of the matrix & press CONTROL+U, and then press ⌘+RETURN" X'y estim. beta_0 beta_1 ##### Sheet/List 3 ##### y x y-avg(y) x-avg(x) (y-avg(y))*(x-avg(x)) (x-avg(x))^2 estimated y true model y residual disturbance sum(y) sum(x) sum sum 0 0 0.00 0.00 avg(y) avg(x) 0.00 0.00 estimated true beta_0 0 beta_1 1.5 ##### Sheet/List 4 ##### y x vector y matrix X X' estimated y true model y residual disturbance 2 1 6 4 3 2 8 5 X'X (X'X)^(-1) 5 3 4 4 X'y estim. true beta_0 0 beta_1 1.5