a. Show that the new model satisfies the assumptions of the standard statist...

a. Show that the new model satisfies the assumptions of the standard statistical model.

b. Find the least squares estimates of β₀ and β₁.

c. Show that performing a least squares analysis on the new model, as was done in part (b), is equivalent to minimizing

This is a weighted least squares criterion; the observations with large variances are weighted less.

d. Find the variances of the estimates of part (b).