Question: Consider the following linear regression model y = 0 + 1x + e where 0 = 4, 1= 3, and the normal random variable e
y = β0 + β1x + e
where β0 = 4, β1= 3, and the normal random variable e has the standard deviation 4.
(a) What is the mean of the response y when x = 4? When x = 5?
(b) Will the response at x = 5 always be larger than that at x = 4? Explain.
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