Suppose in the simple linear regression model Y = + x + e

Chapter , Problem 13

(choose chapter or problem)

Suppose in the simple linear regression model Y = + x + e that 0 < < 1. (a) Show that if x < /(1 ), then x < E[Y ] < 1 (b) Show that if x > /(1 ), then x > E[Y ] > 1 and conclude that E[Y ] is always between x and /(1 ).

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