What is the OLS estimate for the model

[rbcc]

Hi,

I am having trouble with this question

What is the OLS estimate for the model

y= u+? ?~iid(0,?^2)

where u is a scalar

...I dont know what it is, Is it 0 because there are no betas?

Thank You

 

[tkhunny]

That's funny. Usually, it's the generalizations that are a problem. Here we have a simplification.

I'm going with the Arithmetic Mean. You can prove it by building your own Normal Equation.