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I cant seem to use the formula to calculate B1 without knowing xi and yi. Is it possible to calculate using just the variances and covariance? Please help!

The classical linear regression model

  1. Suppose you believe there is a linear relationship between a vehicle’s fuel consumption (Fi, measured in litres/100km) and its speed (Si, measured in km/hour): Fi = β0 + β1.Si + εi.

Suppose you have a random sample of 46 observations on (Fi,Si), with the following sample statistics: Fi = β0 + β1.Si + εi.

Suppose you have a random sample of 46 observations on (Fi,Si), with the following sample statistics: Fbar=8 Sbar=90 Var(Fi)=2 Var(Si)=2500 and Cov(Fi,Si)=-250

(a) What are the OLS estimates of β0 and β1. Interpret these estimates.

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Use this relationship: $E(Y|X=x)=\mu_y + \rho \frac{\sigma_2}{\sigma_1}(x-\bar{x})$, which appears in most of the probability textbooks. The answer will fall out of it.