Hot answers tagged economics
2
I basically agree with @John, let me expand:
We want to model $y$ using a simple linear model, the most basic setup is
$$
y = c + \mathbf{X}\beta
$$
with $y$ the $N$ observations, $c$ a constant, $\mathbf{X}$ the $N \times M$ matrix of regressors and $\beta$ a $M$-dimensional vector of coefficients. This model has $M$ parameters, the elements of $\beta$.
...
Only top voted, non community-wiki answers of a minimum length are eligible
