Question: In the model y, = α + βx, + u, i = 1, ... , N, the following sample moments have been calculated from 10 observations:
(a) Calculate the predictor of y for x = 10 and obtain a 95% confidence interval for it.
(b) Calculate the value of x that could have given rise to a value of y = 1 and explain how you would find a 95% confidence interval for it.