Question: Consider the simple linear regression model y x =+ + 0 1 where the intercept 0 is known. a. Find the least -

Consider the simple linear regression model y x =+ + ββ ε 0 1 where the intercept β0 is known.

a. Find the least - squares estimator of β1 for this model. Does this answer seem reasonable?

b. What is the variance of the slope ˆ (β1 ) for the least - squares estimator found in part a?

c. Find a 100(1 − α ) percent CI for β1 . Is this interval narrower than the estimator for the case where both slope and intercept are unknown?

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