2. Setup: Suppose we know the following: [110] 10 12 15 1 X = 1 1 1 14 Y = 2324 8 || -0.25] 0.25 [ Var (3) = 9. 7.356 -0.587] Identify the following (only algebra required, no complicated matrix calculations): (a) What are the x-values in the dataset?

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2. Setup:
Suppose we know the following:
[1 10]
1
10
X = 1 12
1 15
[114]
Y = 2
= €
-0.25
Var(8) = 9.
0.25
7.356 -0.587]
-0.587 0.048
Identify the following (only algebra required, no complicated matrix calculations):
(a) What are the x-values in the dataset?
1
(b) Find the equation of the regression line in the form ŷ = B₁ + B₁x.
(c) Find Var(8o), Var (3₁).
(d) Find COV (30, 31).
Transcribed Image Text:2. Setup: Suppose we know the following: [1 10] 1 10 X = 1 12 1 15 [114] Y = 2 = € -0.25 Var(8) = 9. 0.25 7.356 -0.587] -0.587 0.048 Identify the following (only algebra required, no complicated matrix calculations): (a) What are the x-values in the dataset? 1 (b) Find the equation of the regression line in the form ŷ = B₁ + B₁x. (c) Find Var(8o), Var (3₁). (d) Find COV (30, 31).
Expert Solution
Step 1: Write the given information.

The variable X is,

X equals open square brackets table row 1 row 1 row 1 row 1 row 1 end table space space space table row 10 row 10 row 12 row 15 row 15 end table close square brackets

The variable Y is,

Y equals open square brackets table row 2 row 3 row 2 row 4 row 3 end table close square brackets

The coefficient vector is beta with hat on top equals open square brackets table row cell negative 0.25 end cell row cell 0.25 end cell end table close square brackets.

The variance-covariance matrix of beta with hat on top is V a r open parentheses beta with hat on top close parentheses equals 9 times open square brackets table row cell 7.356 end cell cell negative 0.587 end cell row cell negative 0.587 end cell cell 0.048 end cell end table close square brackets.

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