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Unformatted text preview: solution b = ( X X )-1 X Y yields the values of b and b 1 discussed in class and in the book. (b) According to results from linear models, the variance of b is the upper left element of 2 ( X X )-1 , the variance of b 1 is the lower right, and the covariance between b and b 1 is given by the o-diagonal. Verify that 2 ( X X )-1 gives the correct values (i.e. in the text or notes) for the two variance terms. (c) Are b and b 1 independent? Why or why not? 1...
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- Fall '11