Consider the following five observations. You are to do all the parts of this exercise using only a calculator.

(a) Complete the entries in the table. Put the sums in the last row. What are the sample means x and y?

(b) Calculate b1 and b2 using (2.7) and (2.8) and state their interpretation.

(c) Compute 5 i¼1x2 i , 5 i¼1xiyi. Using these numerical values, show that ðxi xÞ
2 ¼ x2 i Nx2 and ðxi xÞðyi yÞ ¼ xiyi Nxy

(d) Use the least squares estimates from part

(b) to compute the fitted values of y, and complete the remainder of the table below. Put the sums in the last row.

x y x-F (x-x) y-y (x-1)(y-y) 0 6 1 2 2 3 3 1 4 0 x= yi= (x)= (, - 7)2 = (y-3)= (x) (y-5)=