Consider the model Yi = (31xi1 + (32xi2 + ei, eiS i.i.d. N(O, (72 ). There are
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Consider the model Yi = (31xi1 + (32xi2 + ei, eiS i.i.d. N(O, (72 ). There are 15 observations and the sum of the squared observations is y'y = 3.03. Use the normal equations given below to answer parts
(a) through (d).
(a) Estimate (31, (32, and 172.
(b) Give 98% confidence intervals for (32 and (32 - (31.
(c) Perform an a = .05 two-sided test for Ho : (31 = 0.5.
(d) Find an appropriate P value for the one-sided test of Ho : (31 + (32 = 0 versus Ho : (31 + (32 > o.
The normal equations are
[ 15.00 374.50] [(31] [6.03 ] 374.50 9482.75 (32 - 158.25 .
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