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A bivariate regression is fitted to 20 sample observations on Y and X, where the data are expressed as (30 pts) X'X = X'Y

A bivariate regression is fitted to 20 sample observations on Y and X, where the data are expressed as (30 pts) X'X = X'Y 20 10 10 30 30 = [3] 40 Y'Y = 75 a) Compute the regression equation. b) Estimate the standard error of 3 and test the hypothesis that B is zero. c) A new observation (21st observation) is obtained showing X21 = 2 and Y21 = 4. Compute the new regression equation.

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