Consider the paired sample {(3, 1),(3, 5),(6, 6),(6, 8),(7,10)}. Do the following by hand (you may use a basic calculator, butnot a statistical program).
(a) Find estimates βˆ 0 and βˆ 1 of the regression parameters β0and β1.
(b) Make a rough sketch of the data and regression line.
(c) Predict the value of y when x = 5.
(d) Predict the value of y when x = 15.
(e) Which prediction (part c or d) do you trust more? Why?
(f) For the data point (3, 5), calculate the residual i .
(g) Perform a test of H0 : β1 = 0 vs HA : β1 6= 0. Use α =0.05.
