111111111111

3. Consider the following true relationship between random variables y; and Ti: yi = 3+ xi+ ui Both y; and x; are continuous variables, and E [uilx] = 0. Now, suppose that a researcher collects data on yi and Ti, where i is the index for sample observations. She regresses yi on r; by OLS and obtains the following estimates for the intercept and slope, respectively, Bo = 8 and 31 = 0.4. Define y; as the OLS predicted (or fitted) value, and u; as the OLS residual. The following 3 observations are among the observations in her data set: 2 yi Ti 1 8 2 16 15 3 14 5 Use the attached grid (following page) to answer the following questions (if you don't use the grid, please make sure your grid is well labeled): (a) (3 points) Draw and label E [yixi] on the grid for all r: 2 0 and ;