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Suppose you are given the following simple dataset, regress Y on X: y=β0+β1x+u X Y 1...

Suppose you are given the following simple dataset, regress Y on X: y=β0+β1x+u

X

Y

1

2

2

4

6

6
  1. Calculate β0 andβ1Show algebraic steps.
  2. Interpret β0 and β1
  3. Calculate the predicted(fitted)value of each observation
  4. Calculate the residual ofeach observation
  5. When x=3, what is the predicted value of Y?
  6. Calculate SSR, SST, and then SSE.
  7. How much of the variation in Y is explained by X?

8)Calculate the variance estimator

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