OLS estimator b=x\y?

Hi guys,

when x is n*2 vector and y is n*1 vector,

b=(x'*x)^(-1)*x'*y.

If I use the expression like

b=x\y,

both have same results.

What is difference between these two expressions?

Answer 1

[Star Strider]

‘What is difference between these two expressions?’

The way they are implemented in MATLAB. The documentation for mldivide,\ explains how it works (so I won’t go into that here), and the reason it is more stable and preferred over taking the inverse and multiplying.

[TAEKYU EOM]

Thanks for your comment!

[Star Strider]

As always, my pleasure!