Question: Suppose you are estimating a simple linear regression model. (a) If you multiply all the x values by 20, but not the y values, what

Suppose you are estimating a simple linear regression model.

(a) If you multiply all the x values by 20, but not the y values, what happens to the parameter values b1 and b2? What happens to the least squares estimates b1 and b2? What happens to the variance of the error term?

(b) Suppose you are estimating a simple linear regression model. If you multiply all the y values by 50, but not the x values, what happens to the parameter values b1 and b2? What happens to the least squares estimates b1 and b2? What happens to the variance of the error term?

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