Consider a simple linear regression model where time is the predictor variable. Assume that the errors are uncorrelated and have constant variance 2 . Show

Consider a simple linear regression model where time is the predictor variable. Assume that the errors are uncorrelated and have constant variance

σ2

. Show that the variances of the model parameter estimates are V T T T

ˆ ( )

( ) β σ 0 2 22 1 1 ( ) = +

−

and V

T T

ˆ

( ) β σ 1 2 2

12 1 ( ) = −