2. Using the data above: a. Find ₂ if we run the regression without intercept. b. Show (x,y) is not on the regression line.

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Please solve question 2, thanks!
### Expert Q&A

#### 1. Consider the following 4 observations:

a) Fill in the table:

| x  | y  | (x-x̄) | (y-ȳ) | C*D | C^2 | ŷ    | error |
|----|----|--------|-------|-----|-----|------|-------|
| 1  | 6  |        |       |     |     |      |       |
| 2  | 4  |        |       |     |     |      |       |
| 3  | 12 |        |       |     |     |      |       |
| 4  | 10 |        |       |     |     |      |       |

- Σx = 
- Σy = 

- x̄ (mean x) = 
- ȳ (mean y) = 

b) Use the table above to find the best coefficients for the following regression:
\[ y = \beta_1 + \beta_2 \cdot x \]

- (i.e. Find \(\beta_1\) and \(\beta_2\)).

c) Interpret the \(\beta\)s.

#### Part b:

c) Plot the data and the estimated linear regression (on the same graph).

d) Obtain the residuals for each observation and show that \(\sum_i e_i\) is indeed zero.

#### 2. Using the data above:

a) Find \(\beta_2\) if we run the regression without intercept.

b) Show \((\overline{X}, \overline{Y})\) is not on the regression line.
Transcribed Image Text:### Expert Q&A #### 1. Consider the following 4 observations: a) Fill in the table: | x | y | (x-x̄) | (y-ȳ) | C*D | C^2 | ŷ | error | |----|----|--------|-------|-----|-----|------|-------| | 1 | 6 | | | | | | | | 2 | 4 | | | | | | | | 3 | 12 | | | | | | | | 4 | 10 | | | | | | | - Σx = - Σy = - x̄ (mean x) = - ȳ (mean y) = b) Use the table above to find the best coefficients for the following regression: \[ y = \beta_1 + \beta_2 \cdot x \] - (i.e. Find \(\beta_1\) and \(\beta_2\)). c) Interpret the \(\beta\)s. #### Part b: c) Plot the data and the estimated linear regression (on the same graph). d) Obtain the residuals for each observation and show that \(\sum_i e_i\) is indeed zero. #### 2. Using the data above: a) Find \(\beta_2\) if we run the regression without intercept. b) Show \((\overline{X}, \overline{Y})\) is not on the regression line.
Expert Solution
Step 1

The given regression line is,
y=β1+β2x   ................(I)
Here,  β1 is the intercept and β2 is the slope.

The regression line without intercept is obtained by substituting β1 = 0 in the above equation(I)

y=β1+β2xy=0+β2x y=β2x  ..................(II)

The slope equation is obtained by using the formula,
β2=xyx2

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