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Use R to generate n = 400 samples (idependent identically distributed random numbers) of X ∼...

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Basic Math

Use R to generate n = 400 samples (idependent identicallydistributed random numbers) of X ∼ N(0, 4). For each Xi , simulateYi according to Yi = 3 + 2.5Xi + εi , where εi ∼ N(0, 16), i = 1,..., n. Use R to solve the following questions. (a) Compute theleast square estimators of βˆ 0 and βˆ 1. (b) Draw a regressionline according to the numbers computed in (a). Plot Y and X withthis regression line. Hint: Use rnorm.

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