i=1,…,n, where x1,…,xn are given constants, and ϵ1,…,ϵn are independent, identically distributed N(0,σ2), with σ2 unknown.
Find the least squares estimator β of β. State, without proof, the distribution of β and describe how you would test H0:β=β0 against H1:β=β0, where β0 is given.