Exercise 4

  1. Refer to the AirFreight problem (problem 3 in Exercise 1). The data are in file AIRFREIGHT and a brief description of the variables is in the file AIRFRd.

a. Using matrix methods, find

Y’Y

X’X

X’Y

b. Using matrix methods, find the following

(X’X)-1

b

e

SSR

SSE

s2(b)

Yhath when Xh=2

s2[Yhath] when Xh=2

c. From s2(b), obtain the following

s2(b1)

s2(b0)

s(b0,b1)