Chapter 12, Problem 3PT

To determine

To find:

Inferences about the slope beta of a regression line with the least squares are centred on either of the following distribution.

Answer to Problem 3PT

The t distribution with n — 2 degrees of freedom

Explanation of Solution

Given:

Formula used:

Calculation:

These is need to approximate 2 parameters (y-intercept and slope $\beta$ ) to calculate the lest-squares regression axis.

So the resulting distribution is the t-distribution with the degrees of freedom equivalent to the sample size ii limited by the number of parameters predicted.

df = n -2

Hence, the correct option is (d)