Let the sample regression line be yi = b0 + b1xi + ei = y`i + ei

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Let the sample regression line be
yi = b0 + b1xi + ei = y`i + ei (i = 1, 2, c, .., n)
and let x and y denote the sample means for the independent and dependent variables, respectively.
a. Show that
ei = yi €“ y-bar €“ b(xi €“ x-bar)
b. Using the result in part a, show that
Π Σε-0 i=1

c. Using the result in part a, show that

Let the sample regression line beyi = b0 + b1xi

d. Show that
y`i €“ y-bar = bi(xi €“ x-bar)
e. Using the results in parts c and d, show that
SST = SSR + SSE

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Related Book For  book-img-for-question

Statistics For Business And Economics

ISBN: 9780132745659

8th Edition

Authors: Paul Newbold, William Carlson, Betty Thorne

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