QUESTION 7 Given the least squares regression line Y 52 o th

QUESTION 7 Given the least squares regression line Y 5-2 o the relationship between X and Y is positive O the relationship between X and Y is negative as X increases, so does Y o as X decreases, so does Y QUESTION 8 Heteroskedastic error terms o Are correlated with the independent (explanatory) variable X O Do not have the mean constional on X equal to zero o Do not have constant variance for different values of X O Are correlated across different observations QUE STION 9 If an estimated regression line has a y-intercept of 10 and a slope of 4, then when x 2 the actual value of y is o 18 o 15

Solution

7. The relation ship between X and Y is negative

8. are correlated across different observations

9. 18

16. Represents the population regression function

17. Least squares line

24. Omitted influences on Y

25. there are always as many points above the fitted line as there are below it