Question

Given the values: n 6,x bar 3.5, y_ bar 5, SSxy-30, and SSxx-15, what are the values of the least squares estimates for Bo and B1? Po B1

Answer 1

SOLUTION:-

Here, we have to calculate the $_{\beta1 }$:-

We know the formula for $_{\beta1 }$

$_{\beta1 }=SS_{xy}/SS_{xx}$

$\therefore _{\beta1 }=-2$

Here, we have to calculate the $_{\beta0 }$:-

$_{\beta0 }=5-( _{\beta1 }*3.5)$

$_{\beta0 }=5-(-2*3.5)$

$_{\beta0 }=5+7$

$_{\beta0 }=12$