a Calculate SSE and S2 for Exercise 11.4. Use the matrix
Chapter 11, Problem 70E(choose chapter or problem)
a Calculate SSE and S2 for Exercise 11.4. Use the matrix approach.
b Fit the model suggested in Exercise 11.4 for the relationship between audited values and book values by using matrices. We can simplify the computations by defining
\(x_{1}^{\prime}=x_{1}-\bar{x}\)
And fitting the model \(Y=\beta_{0}^{\prime}=\beta_{1}^{\prime} x^{\prime}+\varepsilon\). Fit this latter model and calculate SSE. Compare your answer with the SSE calculation in part (a).
Equation transcription:
Text transcription:
x{1}^{prime}=x{1}-bar{x}
Y=beta{0}^{prime}=beta{1}^{prime} x^{prime}+varepsilon
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