A

5. The client wonders why it is necessary to t the intercept, since the client is only interested in the relationship between the proportion of electric vehicles among all vehicles and the average household income. The client wants you to derive the estimator when only tting the slope without an intercept using least squares. Do you agree that it is unnecessary to t the intercept? If so, reassure the client that this decision makes sense,- otherwise, explain why this can be problematic. (Hint 1: Consider the squared error 1053 when xing the intercept to be zero; Hint 2: Think about the interpretation of ,60 when [30 = 0.) 6. You decide to use least squares estimation to estimate unknown parameters in the model. Your client has not heard about least squares estimation before, and asks you to explain the least squares estimation. (Hint: write down the loss function for least squares, and briey explain why it makes sense.)