ISyE 2028A, Summer 2010 Friday July 23 Quiz 8 Solutions 1.Which of the following statement is not true if37yx=−+? A.The y-intercept is 7 B.ydecreases by 3 when xincreases by 4 C.ydecreases by 3 when xincreases by 1 D.The slope of the line is -3 ANSWER: C 2.The simple linear regression model is 01, Yxββ ε=++where εis a random variable assumed to be normally distributed with 2( )0 and ( ).EVεσ==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 Ywhen xx∗=? A.xµββ∗∗⋅=+B.()x∗∗⋅=+C.1xµβ∗∗⋅=D.0∗⋅=E.0∗⋅=ANSWER:
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