Question: Use the rnorm() function to create a vector of 150 observations drawn from a N(0,1) distribution (call this vector x), and another vector of 150
Use the rnorm() function to create a vector of 150 observations drawn from a N(0,1) distribution (call this vector x), and another vector of 150 observations drawn from a N(0, 0.2) distribution (call this vector Error). Use these to create a vector y according to the model Y = -1.5 + 0.8 X + Error. Consider this data to answer questions below:
Fit a least squares linear model to predict y using x. How do
o and ? 1 compare to the actual values of ?0 & ? 1 . What are the 95% confidence intervals for
o and ? 1 ? what is the prediction interval for a case with x = 1?
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