You are given the following information about y and x. $$\begin{array} { l l } \text { Dependent Variable } ( y ) & \text { Independent Variable } ( x ) \ 12 & 4 \ 3 & 6 \ 7 & 2 \ 6 & 4 \end{array}$$ The least squares estimate of the intercept or b₀ equals A) 1. B) -1. C) -11. D) 11.

Question

Quizplus · Accepted Answer

The least squares estimate of the intercept $ b_0 $ is calculated using the formula $ b_0 = \bar{y} - b_1\bar{x} $. First, calculate the slope $ b_1 $ using the formula $ b_1 = \frac{\sum{(x_i - \bar{x})(y_i - \bar{y})}}{\sum{(x_i - \bar{x})^2}} $. After finding $ b_1 $, use it to find $ b_0 $. The calculations result in $ b_0 = 11 $.