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Intercept plus slope for a five-point downward fit

Question

Fit Y=β0+β1x+ϵY=\beta_0+\beta_1x+\epsilon by least squares to the points (−2,3)(-2,3), (−1,2)(-1,2), (0,1)(0,1), (1,1)(1,1) and (2,0.5)(2,0.5). What is β^0+β^1\hat\beta_0+\hat\beta_1?

Short answer

0.90.9. Here xˉ=0\bar x=0 and yˉ=1.5\bar y=1.5. The centred cross-product is Sxy=−6S_{xy}=-6 and Sxx=10S_{xx}=10, so β^1=−0.6\hat\beta_1=-0.6 and β^0=yˉ=1.5\hat\beta_0=\bar y=1.5, summing to 0.90.9.

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