Question: (b) Consider the regression model Y = B + BX + u. Calculate the OLS estimates By and #1. (c) On a graph, carefully plot


(b) Consider the regression model Y = B + BX + u. Calculate the OLS estimates By and #1. (c) On a graph, carefully plot all data points and the regression line. For parts (d) and (e). either add columns to the table in part (a) or make a new table: (d) Compute fitted values Y, and residuals a, Verify that , Y, = nY,, and El, i, = 0. (e) Compute u, u, X, and u, Y. Calculate the sums of all columns and verify that you are getting zero where appropriate. (f) Compute SST, SSE, SSR and R-squared of the regression. (g) Compute a', Var(8, ) and se(B,). Does N have an effect on Y? Formulate and test the corresponding null and alternative hypotheses and interpret your result
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