1. The problem statement, all variables and given/known data My question is q.3 in the attachment. I don't really understand the scenario of the question. 3. The attempt at a solution For (a), if X = 1, will the model become: y = (b_1)(E_1) + epsilon? So (b_i)'s are the slopes of the models? But what is the assumption of the model? And for the rest of the question, I'm just looking for someone to explain to me a little bit more.