Question 6: Simulate a data set with 150 observations y; = 40+ 6x+2r²+3r³+₁, where €; follows independent normal distribution N(0, 1). a) Perform polynomial regression on your simulated data set and using x, 1(x²), 1(x³) as the predictors. Compare the estimated coefficients with the true model and report the R-square. b) Formulate the design matrix of this regression and write down the first two rows of the design matrix based on your data set. c) Perform polynomial regression on your simulated data set and using z, I(x²), 1 (x³), 1 (xª) as the predictors. Compare the estimated coefficients with the true model.

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Question 6: Simulate a data set with 150 observations y; = 40+ 6x + 2x² + 3x³ +€, where
€; follows independent normal distribution N(0, 1).
a) Perform polynomial regression on your simulated data set and using x, I(x²), 1(x³) as the
predictors. Compare the estimated coefficients with the true model and report the R-square.
b) Formulate the design matrix of this regression and write down the first two rows of the
design matrix based on your data set.
c) Perform polynomial regression on your simulated data set and using z, I(x²), 1 (x³), 1 (x¹)
as the predictors. Compare the estimated coefficients with the true model.
Transcribed Image Text:Question 6: Simulate a data set with 150 observations y; = 40+ 6x + 2x² + 3x³ +€, where €; follows independent normal distribution N(0, 1). a) Perform polynomial regression on your simulated data set and using x, I(x²), 1(x³) as the predictors. Compare the estimated coefficients with the true model and report the R-square. b) Formulate the design matrix of this regression and write down the first two rows of the design matrix based on your data set. c) Perform polynomial regression on your simulated data set and using z, I(x²), 1 (x³), 1 (x¹) as the predictors. Compare the estimated coefficients with the true model.
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