Let y = o , + 1 x 1 + 2 x 2 ,

Question:

Let ŷ = β̂o, + β̂1x1 + β̂2x2, ... β̂kxbe the least squares prediction equation, and let y be some observation to be obtained in the future.

a. Explain why (ŷ - y) is normally distributed.

b. Show that 

E(ŷ - y) = 0

and

V(ŷ - y) = [1 + a'(X'X)-1a]σ2

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Statistics For Engineering And The Sciences

ISBN: 9781498728850

6th Edition

Authors: William M. Mendenhall, Terry L. Sincich

Question Posted: