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  3. this is the correct question please answer completely...

Question: this is the correct question please answer completely...

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Question 1 (27 pts.) A health economist uses data on enrollment in a health insurance plan Di and doctor visits Yto estimate the population regression function (PRF)YB+B2Di+ u by using the following sample: (Groupo) D 3.8 The benchmark group is not enrolled in a health insurance plan.

f) (2 pts.) Suppose that the true values of the population parameters are β1-3 and β2 the data point (X,D2).calculate the deterministic component E (Y2lD2), the error term u2, the predicted value and the residual 2. For g) (3 pts.) In a single graph: w the sample regression function, the population regression function and all data points, le. (D1.h), (D2,%) and (D3%) component E(%) Da) and its error term ui For the data point (D. Y.), lustrate the decomposition of Y2 into its predicted value ?2 and -For the data point (Dz-%), illustrate the decomposition of ½ into its deterministic its residual 2 SRF, y 4i PAT h) (2 pts.) Compute TSS i) (2 pts.) Compute ESs.

this is the correct question, please answer completely.

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