question indirect least squares, turning matrices into a system of equations

[parsec2011]

Hi everyone,

I am studying indirect least squares method and cannot figure out how to create a system of equations from my matrices. Help is much appreciated. The problem is in the picture attachment.

Thanks

 

[Dason]

Do you know how matrix multiplication works?

 

[parsec2011]

hi, thanks for your message. I didn't three hours ago, but I found a really good explanation of the indirect least squares method including the rules for multiplication in matrices. Tomorrow I will post the solved problem, good night

 

[parsec2011]

[SOLVED] question indirect least squares, turning matrices into a system of equations

Here is the answer to the problem in which I got stuck, which happens to be a part of a wider problem in Econometrics in which students are asked to carry out the indirect least squares method ILS step by step. It is indeed required to know matrix operations, dot product operations before studying this method.