Consider the following data on 10 students from a 2012 Econometrics class: Observation Midterm Grade (out of 100) Hours of Study 1 90 20 2 100 19 3 65 3 4 75 8 5 83 7 6 77 6 7 50 1 8 80 10 9 65 5 10 75 6 (a) Calculate the values of ß, and ß, for the simple linear regression model given by: Grade; = B

 Consider the following data on 10 students from a 2012 Econometrics class: Observation Midterm Grade (out of 100) Hours of Study 1 90 20 2 100 19 3 65 3 4 75 8 5 83 7 6 77 6 7 50 1 8 80 10 9 65 5 10 75 6 (a) Calculate the values of ß, and ß, for the simple linear regression model given by: Grade; = B. + Ê, StudyHours; +e;. (b) Interpret those values in the context of the variable definitions and units of measurement. (c) Using the results from part (a), calculate the error (e;) for each of the 10 observations. What do these errors represent? (c) Calculate the standard error of the regression (se). Interpret the result. (d) Calculate the standard error of the ß, estimate (). Interpret the result. (e) Test the null hypothesis that studying has no effect on midterm grades. What do you conclude? Is studying a good investment?