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Examen
ECMT 463 Test 1(With Accurate Answers) Grade A+
In other words, that is the sample covariance(xi,yi)/sample variance(xi). 
 
B1hat equals the population covariance divided by the variance of x when E(u)=0 and Cov(x,u)=0. An immediate implication is that if x and y are positively correlated in the sample, then B1hat is positive, and B1hat is negative if x and y are negatively correlated in the sample. 
 
The main assumption in getting this value is that the xi in the sample are not all equal to the same value. 
Summation from 1 to n(xi-xbar)...