STATISTICS

QUESTION 1 [14] Consider the simple linear regression model, Y = Bot BIXite, i = 1, 2, ..., n where c, are independent normally distributed random errors each with expectation zero and variance o'. (a) Given that Bo = V - BIX , determine the sampling distribution of Bo, i.e., find: (1) E(B.) and (2) (ii) Var(Bo). (4) (b) Given that , = Ey, (x, - Y) / E (x, -x), determine the sampling distribution of B 1, i.e., find: (i) E(B, ) and (3) (ii) Var (B,)