Least-Squares Theory Based on General Distributional Assumptions with an Application to the Incomplete Observations Problem

Abstract
The linear regression model y=β′x+ ε is reanalyzed. Taking the modest position that β′x is an approximation of the “best” predictor of y we derive the asymptotic distribution of b and R2, under mild assumptions.The method of derivation yields an easy answer to the estimation of β from a data set which contains incomplete observations, where the incompleteness is random.

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