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Homework answers / question archive / Consider the simple linear regression equation: Y = Bo + B,X+u The following diagram shows random samples from X and Y (as dots), along with the OLS regression line of best fit (the solid black line)

Consider the simple linear regression equation: Y = Bo + B,X+u The following diagram shows random samples from X and Y (as dots), along with the OLS regression line of best fit (the solid black line). 20.00 -2 observation i 9.66 5.98 0.00 + 0.00 7.01 10.00 ? According to the diagram, what is the value of ;, where observation i is the red dot?

Consider the return dataset from the wooldridge package in R(you can load this dataset using data(return) after loading the wooldridge package). According to the data, what is the average capital return in 1990? Round your answer to two decimal places.