Question 15 of our Applied Regression final exam (and solution to question 14)

Here’s question 15 of our exam: 15. Consider the following procedure. • Set n = 100 and draw n continuous values x_i uniformly distributed between 0 and 10. Then simulate data from the model y_i = a + bx_i + error_i, for i = 1,…,n, with a = 2, b = 3, and independent errors …