a) Set the value for b0 (let’s say 10) b) Set the value for σ2 (let’s say 5) c) Draw a sample of size n of random deviations from a standard normal distribution N(0,1) (z values) d) Form a vector of residuals:
a) Set the value for b0 (let’s say 10)b) Set the value for σ2 (let’s say 5)c) Draw a sample of size n of random deviations from a standard normal distribution N(0,1)(z values)d) Form a vector of residuals: