(Answered) The last lessons have spent a lot of time describing the

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The last lessons have spent a lot of time describing the slope and intercept terms (and their variances) of the one-variable sample regression function. We also know that for any particular value of the independent variable (call it X0), that the predicted value of Y0 is Y0 = B0 + B1X0 . (This is sometimes called a "point prediction.")

a) Prove that Y0 is an unbiased estimator of E[Y0|X0].

b) Derive the formula for the variance of Yo . Show at least two steps in this derivation.

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