Y=0+7(X-X)+u Based on a sample of 50 observations on Y and X the following statistics are...

 

Transcribed Image Text:

Y=0+7(X-X)+u Based on a sample of 50 observations on Y and X the following statistics are computed: (-)=139,800; (-) 139,800; (X,-)=6,600; (x-(-)=19,400; =1,070 = 2, 400. (1) a) Estimate y, and y, that is, the intercept and the slope coefficient in the above regression. Show numerically that the fitted line passes through the mean of Y and X. (10 points) b) Compute SSE, SSR and R. (8 points) c) Calculate the estimated variance and standard error of,. (4 points) d) Use the above data to estimate coefficients of the following model Y = B+ BX+u Is? Why? (6 points) e) If you add 5 to each and every observation on X, what will happen to the estimated values of the intercept and slope coefficients in model (2)? Explain. (4 points) (2) f) If you divide every observation on X by 10, what will happen to the estimated values of the intercept and slope coefficients in model (2)? Explain. (4 points) g) If you divide every observation on Y by 8, what will happen to the estimated values of the intercept and slope coefficients in model (2)? Explain. (4 points) Y=0+7(X-X)+u Based on a sample of 50 observations on Y and X the following statistics are computed: (-)=139,800; (-) 139,800; (X,-)=6,600; (x-(-)=19,400; =1,070 = 2, 400. (1) a) Estimate y, and y, that is, the intercept and the slope coefficient in the above regression. Show numerically that the fitted line passes through the mean of Y and X. (10 points) b) Compute SSE, SSR and R. (8 points) c) Calculate the estimated variance and standard error of,. (4 points) d) Use the above data to estimate coefficients of the following model Y = B+ BX+u Is? Why? (6 points) e) If you add 5 to each and every observation on X, what will happen to the estimated values of the intercept and slope coefficients in model (2)? Explain. (4 points) (2) f) If you divide every observation on X by 10, what will happen to the estimated values of the intercept and slope coefficients in model (2)? Explain. (4 points) g) If you divide every observation on Y by 8, what will happen to the estimated values of the intercept and slope coefficients in model (2)? Explain. (4 points)