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GATE 2023 ST – Question 26

Regression Analysis · Linear Models and Estimation · 1 mark · Multiple choice

Consider y_k=α₀+α₁ ln k+ε_k,k=1,…,n,with iid errors of density e^(−|x|)/2 on ℝ. Which statement is true?

  1. The MLE of α₀ does not exist.
  2. The MLE of α₁ does not exist.
  3. The least-squares estimator of α₀ exists and is unique.
  4. The least-squares estimator of α₁ exists but is not unique.

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Correct answer: (C) The least-squares estimator of α₀ exists and is unique.

Explanation

For n≥2,the design columns 1 and ln k are independent since ln 1≠ln 2. Thus the Gram matrix is positive definite and both least-squares coefficients exist uniquely,proving **C**. Laplace likelihood maximization minimizes a continuous convex sum of absolute residuals,which attains a minimum. The printed problem implicitly requires n≥2; for n=1 the slope is unidentified.

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