Exercise 6.8.5 Consider the model yi = 0 +1xi +ei, eis i.i.d. N(0, 2), i = 1,2,3,

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Exercise 6.8.5 Consider the model yi = β0 +β1xi +ei, eis i.i.d. N(0,σ 2), i =

1,2,3, . . . ,n. If the xis are restricted to be in the closed interval [−10,15], determine how to choose the xis to minimize

(a) Var(ˆβ0).

(b) Var(ˆβ1).

(c) How would the choice of the xis change if they were restricted to the closed interval [−10,10]?

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Exercise 6.8.5 Consider the model yi = 0 +1xi +ei, eis i.i.d. N(0, 2), i = 1,2,3,

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