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1. If a true model of simple linear regression reads: yi −y ̄ = β0 +β1(xi...

1. If a true model of simple linear regression reads: yi −y ̄ = β0 +β1(xi −x ̄)+εi for i = 1, 2, · · · , n, showβ0 =0andβˆ0 =0. (1pt)

(hint: use the formula of estimator βˆ0 = y ̄ − βˆ1x ̄.)

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