Finding Expected Value of Slope and Variance of Residuals
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1. Given the following Equation show that for the estimator b1, E[b1] = B1
yi=B1*Xi1+(epsilon)i
b1 = (sum(yi*xi1))/(sum((xi1)^2))
2. ei = yi-yhat = yi-bi*xi1 equal the residual
find var(ei)
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Solution Summary
The solution gives detailed steps on finding two statistic on regression: one is the expected value of slope and the other is the variance of residuals. Attached in Word.
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