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Suppose (X, Y) satisfy the least squares assumptions, and, in addition, u, is N(0, of) and is independent of X A sample of size

 

Suppose (X, Y) satisfy the least squares assumptions, and, in addition, u, is N(0, of) and is independent of X A sample of size n 30 yields: Y = 43.2 + 61.5X, R2 = 0.54, SER = 1.52 (10.2) (7.4) where the numbers in parentheses are the homoscedastic-only standard errors for the regression coefficients. a. Construct a 95% confidence interval for Bo. b. Test H,: B, = 55 vs H, # 55 at the 5% level. c. Test Ho: B, = 55 vs H, > 55 at the 5% level. %3D

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