y 101399 492039x 031390 032682 T 50 R2 08216 F148 22666

y = 10.1399 + 4.92039x (0.31390) (0.32682) T = 50 R^2 = 0.8216 F(1,48) = 226.66 sigma = 2.2195 (standard errors in parentheses) Now say that you multiply x by 3 and multiply y by 3 and re-estimate the model. What will be your new estimate of the slope parameter?

Solution

When x is multiplied by 3 and y is multiplied by 3

slope willnot change. Slope will remain the same.

Only intercept will become triple.

 y = 10.1399 + 4.92039x (0.31390) (0.32682) T = 50 R^2 = 0.8216 F(1,48) = 226.66 sigma = 2.2195 (standard errors in parentheses) Now say that you multiply x by

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