Answer Happy

[7-8] Let (X,Y) be a pair of random variables. Suppose you run a linear least squares regression of Y on X. The estimated regression line is û = 3 + 2x. 7. You get an additional data point with X = 2 and Y = 7 and run the regression again including the new data point. What happens to the estimated slope coefficient? (a) It increases. (b) It decreases. (c) It remains the same. (d) Cannot tell based on the information given. 8. What happens to the sample standard error of residuals in the new regression run using the new data point relative to sample standard error of residuals in the original regression? (ignore the difference between n and n + 1) (a) It increases. (b) It decreases. (c) It remains the same. (d) Cannot tell based on the information given.