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Pl a) The following for observations yield, via OLS, the sample regression function Complete the table by calculating Yi = 0.5 + 0.8X, + er,

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a) The following for observations yield, via OLS, the sample regression function Complete the table by calculating Yi = 0.5 + 0.8X, + er, er and er Y X Y= 0.5 + 0.8 (X) e = ( Y - D) e 2 x2 1 1, 3 - 0.3 0.09 2.25 3 2 2 , 1 10 .9 10.21 0,25 2 3 2 . 9 - 0.9 10 81 0, 25 4 4 3 . 7 0.3 10.09 2 , 25 Total 18 5 Lez 1.8 b) Calculate Se c) What is Se, the square root of se, called? What is its value in the case ? Itis the variance offthe regression equation * ** Assume ei = 0 at a = 0.05 At the predicting Y| X = 4, and find the confidence interval for this Y e) Estimating HY x=4 f) Describe in about 5-6 sentences what you got the result from d) and e)

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