Question: Suppose we run a regression on a data set of Xs and Ys and obtain a least squares line of Y = 12 - 3X.

Suppose we run a regression on a data set of X’s and Y’s and obtain a least squares line of Y = 12 - 3X.

a. If we double each value of X, what is the new least squares line?

b. If we triple each value of Y, what is the new least squares line?

c. If we add 6 to each value of X, what is the new least squares line?

d. If we subtract 4 from each value of Y, what is the new least squares line?

Step by Step Solution

3.46 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To answer these questions we need to understand how the coefficients of the least squares line chang... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Microeconomics Questions!