Assignment:
1. (a) Assume that least-squares estimates are obtained for the relationship Y = a + bX.
After the work is completed, it is decided to multiply the units of the X variable by a factor of 10. What will happen to the resulting least squares slope and intercept?
(b) Generalize the result of part (a) by evaluating the effects on the regression of changing the units of X and Y in the following manner:
Y* = c1 + c2Y X* = d1 + d2X
Now what happens to the estimates of the slope and intercept?