Suppose you are given the following simple dataset, regress Y on X:y=β0+β1x+u
X Y 1 2 2 5 5 7 4 6
1) Calculate and Show algebraic steps.
2) Interpret and
3) Calculate the predicted(fitted) value of each observation
4) Calculate the residual of each observation
5) When x=3, what is the predicted value of Y?
6) Calculate SSR, SST, and then SSE.
7) Calculate R-squared.
8) How much of the variation in Y is explained by X?