You are given the following information about y and x. $$\begin{array} { l l } \text { Dependent Variable } ( y ) & \text { Independent Variable } ( x ) \ 5 & 1 \ 4 & 2 \ 3 & 3 \ 2 & 4 \ 1 & 5 \end{array}$$ The least squares estimate of the intercept or b₀ equals A) 1. B) -1. C) 6. D) -5.

Question

Quizplus · Accepted Answer

The data shows a perfect negative linear relationship with a slope of -1. Using the formula for the intercept $b_0 = \bar{y} - b_1\bar{x}$, where $\bar{y} = 3$ and $\bar{x} = 3$, and $b_1 = -1$, the intercept $b_0 = 3 - (-1)(3) = 6$.

You Are Given the Following Information About Y and X