Recall that β̂0 + β̂1x has a normal distribution with expected value β0 + β1x and variance

so that

has a standard normal distribution. If S = (ˆšSSE/n - 2) is substituted for s, the resulting variable has a t distribution with n - 2 df. By analogy, what is the distribution of any particular standardized residual? If n = 25, what is the probability that a particular standardized residual falls outside the interval (-2.50, 2.50)?

Transcribed Image Text:

1 ( -)2 In Σ(xi-x)2 Σ(xi-x)2