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# Consider simple linear regression model Y; = D + BX; + â‚¬ where & Are in- dependent identically distributed (iid) N(O,&") . Suppose the parameter ...

## Question

###### Consider simple linear regression model Y; = D + BX; + â‚¬ where & Are in- dependent identically distributed (iid) N(O,&") . Suppose the parameter values are Bo = 200, 8, 5.0 , and & = 4Explain the meaning of the parameters' Bo 200, Bi 5.0, and 0 = 4 Assume that the scope of the model includes X = 0. b) What is the distribution of Y? What is the mean and variance for this distribution? Display the distributions of Y for X 10, X "20, and X 40. Hint: draw random sample o

Consider simple linear regression model Y; = D + BX; + â‚¬ where & Are in- dependent identically distributed (iid) N(O,&") . Suppose the parameter values are Bo = 200, 8, 5.0 , and & = 4 Explain the meaning of the parameters' Bo 200, Bi 5.0, and 0 = 4 Assume that the scope of the model includes X = 0. b) What is the distribution of Y? What is the mean and variance for this distribution? Display the distributions of Y for X 10, X "20, and X 40. Hint: draw random sample of 100 using rnorm() and display the histogram using hist () commands in R, d)* What is the sample mean and the sample variance for the random sample of 100 in part (c)? Compare estimates with the population mean and the population variance:

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