A sample of 32 auction prices of grandfather clocks, along with their age and the number of bidders is given in the file GFCLOCKS on D2L. a. (3 Points) Use the method of least squares to estimate the unknown parameters POP, , and B2 of the model. The least squares prediction equation is y= b. (4 Points) Calculate the predicted values and corresponding residuals for the model. (1 Point) What is the predicted value for observation 5? $ ii. (1 Point) What is the predicted value for observation 12? $_ iii. (1 Point) What is the residual for observation 20? $ iv. (1 Point) What is the residual for observation 28? $. c. (5 Points) Calculate the mean and the variance of the residuals. The mean of the residuals is and the variance of the residuals is This is close to MSE which is equal to The difference is because the variance of the residuals is calculated with in the denominator, while MSE is calculated with in the denominator. d. (4 Points) Rerun the analysis and request influence diagnostics. i. (1 Point) What is the standardized residual for observation 7? ii. (1 Point) What is the leverage value for observation 16? iii. (1 Point) What is Cook's distance for observation 24? iv. (1 Point) How many outliers are present in the data? 4. (18 Points) Modeling an employee's work-hours missed. A large manufacturing firm wants to determine whether a relationship exists between y , the number of work-hours an employee misses per year, and x , the employee's annual wages. A sample of 15 employees produced the data in the file MISSWORK on D2L. a. (2 Points) Fit the first-order model, Ely =B,+8,x, to the data. The fitted model is y= &