q08_sol - ISyE 2028A Summer 2010 1 Which of the following...

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ISyE 2028A, Summer 2010 Friday July 23 Quiz 8 Solutions 1. Which of the following statement is not true if 37 yx = −+ ? A. The y -intercept is 7 B. y decreases by 3 when x increases by 4 C. y decreases by 3 when x increases by 1 D. The slope of the line is -3 ANSWER: C 2. The simple linear regression model is 01 , Yx ββ ε = ++ where ε is a random variable assumed to be normally distributed with 2 ( ) 0 and ( ) . EV εσ = = Let x denote a particular value of the independent variable x . Which of the following identities are true regarding the expected or mean value of Y when xx = ? A. x µ ββ = + B. () x = + C. 1 x µβ = D. 0 = E. 0 = ANSWER:
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