Question: Consider the linear regression model y = 0 + 1 x + e where 0 = -2, 1 = -1, and

Consider the linear regression model

y = β0 + β1x + e

where β0 = -2, β1 = -1, and the normal random variable e has standard deviation 3.
(a) What is the mean of the response Y when x = 3? When X = 5?
(b) Will the response at x = 3 always be larger than that at x = 5? Explain.

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a The mean response is EY 0 1 x 2 1 x b No only ... View full answer

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