Consider the linear regression model where and where x1 = xi1/n and x2 = xi2/n. (a) Write

Question:

Consider the linear regression model where and where x1 = Σxi1/n and x2 = Σxi2/n. (a) Write out the least squares normal equations for this model.
(b) Verify that the least squares estimate of the intercept in this model is Bo = Σyi/n = y.
(c) Suppose that we use yi = y as the response variable in the model above. What effect will this have on the least squares estimate of the intercept?