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Help me with this question 3. (5 points) Let X* = 4 and * = E[Y*[X* = 4]. It can be shown that the distribution

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3. (5 points) Let X* = 4 and * = E[Y*[X* = 4]. It can be shown that the distribution of ( B, + 82X* - (B, + #2X")) / Vn 5Xx conditional on X* is tn-2. Here o is the residual standard error. (1). What's the estimate for "? (2). Find the 95% CI for a*. (3). Is there strong evidence to reject Ho:* = 0 in support of Hj: u* # 0 at significance level 5%?An article in the Wall Street Journal claimed that home prices were falling while overdue loan payments were piling up. We investigate the relationship between the two variables. The file at http://gattonweb.uky.edu/sheather/book/docs/datasets/indicators.txt contains Y, = percentage change in average home price from July 2006 to July 2007, and X = percentage of mortgage loans 30 days or more overdue in the latest quarter. Consider a simple linear regression model Y = , + 82X + e where the random error terms are uncorrelated and normal with mean 0 and variance o. Finish problems 1, 2, 3

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