I am new to liner algebra and currently looking at the matrix expression for calculating the ordinary least squares estimator:
Can anyone provide a little intuition on the right hand side expression? I have worked through this with matlab and it feels a little like magic that his clever bit of math results in the OLS. I can't see how squaring and summing each Xi, taking the inverse and then multiplying each Xi with the result gets you anywhere near the OLS. Thanks for your help.