Exercise 3 (10 points). Let Y be a response variable and 2₁, 2 be explanatory variables and suppose there is a linear relationship between these variables but only after transforma- tion, i.e., we have log Y = Bo + ₁x² + ₂x₂+e, e~. e~ N(0,0²). Assume we observe a sample of size n = 4, i.e., {(1,22is Yi)}=1, coming from this model and we want to use a multiple linear regression model to analyze it. a) Provide the matrix X, the vector and the vector Y that allow writing the model in a linear form: Y = XB+e. b) What is the interpretation of the parameter ₁ in this model?

Fig: 1