Problem 3.6
For the model
y = β₀ + β₁ x + ε,
it is possible to show that the least square estimate of β₀ and β₁ is given by (3.4).
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Equation 3.4
Using (3.4), argue that in the case of simple linear regression, the least squares line always passes through the point (x̅, y̅).
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