7 Problem 129 Assume that X0 is within the scope of the lin

7. (Problem 1.29) : Assume that X=0 is within the scope of the linear regression model. What is the implication for the regression function if 0 = 0 so that the model is Yi = 1Xi + i? How would the regression function plot on a graph?

Solution

The intercept X_i=0,the expected value of Y_i is 0.

The plot will pass through the origin(0,0)