The simple linear regression model

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Consider a hypothetical data set D = {(xi, yi), i = 1, ..., n}. If the simple linear regression model fitted to this data is given by β0=0.5, β1 = 3 and σ2 = 2.35, what are the parameter estimates of the model if fitted to the data D∗ = {(xi, y∗i), i = 1, ..., n},
where y∗i = a1 · yi + a2, for i = 1, ..., n, and a1 and a2 are known positive constants?

Reference no: EM13320722

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