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1 Introduction 1 1.1 About Econometrics 1 1.2 The Structure of this Book 3 1.3 Illustrations and Exercises 4 2 An Introduction to Linear Regression 7 2.1 Ordinary Least Squares as an Algebraic Tool 8 2.1.1 Ordinary Least Squares 8 2.1.2 Simple Linear Regression 10 2.1.3 Example: Individual Wages 12 2.1.4 Matrix Notation 12 2.2 The Linear
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