You have a random pair(,). is the best linear predictor ofbased on

a) Show this by setting=and finding the corresponding value of

b)Find()

c)The difference is called aresidual. It is the difference between the actual and fitted values of.

Find the expectation of the residual and confirm that the answer justifies the following statement:

"No matter what the shape of the scatter diagram, the average of the residuals is 0."