10-3. Exercises

EXERCISES

Ex 1. State the three assumptions that are the basis for the Simple Linear Regression Model.

Ex 2. The Simple Linear Regression Model is summarized by the equation $y=β_1x+β_0+ε$

Identify the deterministic part and the random part.

Ex 3. Is the number β1β1 in the equation $y=β_1x+β_0$ a statistic or a population parameter? Explain.

Ex 4. Is the number $σ$ in the Simple Linear Regression Model a statistic or a population parameter? Explain.

Ex 5. Describe what to look for in a scatter diagram in order to check that the assumptions of the Simple Linear Regression Model are true.

Ex 6. True or false: the assumptions of the Simple Linear Regression Model must hold exactly in order for the procedures and analysis developed in this chapter to be useful.