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Le. Suppose that the true linear regression model has the form Y = ,6 + 11: + ax: + gxg + e, E~N({J, o2 ),

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Le. Suppose that the true linear regression model has the form Y = ,6" + 11: + ax: + gxg + e, E~N({J, o2 ), while we have undertted it such that E [1'] = n + lx. Assume that in order to obtain least square estimates of n and ,61 in the incorrect model. we (only) use observations of Y at x = 3, 2, 1,IJ,1,2,3. Calculate the bias in estimating n and 1. (lSpts)

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