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1: Mushroom production Suppose you want to model mushroom production as it relates to temperature. The unit for measuring mushroom production are kg and the

1: Mushroom production Suppose you want to model mushroom production as it relates to temperature. The unit for measuring mushroom production are kg and the unit of temperature is degrees Fahrenheit. Assume the following linear model: Q = 0 + 1 T + , N (0, 2) (a) In this linear model, what is the dependent variable? What is the independent variable? (b) If you do not quite believe in this model, and you want to test if there really is a linear relationship between mushroom production and temperature, what is the hypothesis to test? (c) Suppose the model is correct, and the parameters are: 0 = 10 1 = 0.5 = 5 What are the units of intercept, slope, standard deviation of ? (d) What is the conditional distribution of Q given a temperature of T = 60? What is your prediction of Q? Give the 95% prediction interval of Q. The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of the Booth faculty member(s) teaching the course. Distributing or posting this

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