Dear all,

I have this regression model

`fy=randn(1000,1);x1=randn(1000,1);x2=randn(1000,1);u=randn(1000,1);fy=a*x1+b*x2+c*u; %regression model`

where fy is the dependent variable,

x1 and x2 are the independent variables,

u is the error term which is standard normally distributed,

a and b are the coefficients

and c is the square root of the variance.

My goal is to estimate the scalars a,b and c. Is there a way to do that?

## Best Answer