Consider the simple linear regression model, y = Bo + B1X + u. Which of the following statements is correct on estimating the intercept Bo and slope B1 in the population regression of y on X? . = The method of moment approach is that, we compute the estimates of the intercept and slope parameters by
a. plugging the values (Xi, y;), i = 1, n of a random sample from the population into the algebraic expressions derived from the assumptions that E(u) = 0 and Cov(x, u) = 0.
b. The name "ordinary least squares (OLS)" comes from the fact that, the intercept and slope parameter estimates, in addition to being derived using the method of moment approach, can also be derived by minimizing the sum of squared residuals.
c. The algebraic expression of the slope parameter estimate is simply the sample covariance between x and y divided by the sample variance of x. C.
d. All of the above.