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Q165Section III (Statistics)165 of 190

Orthogonal design columns don't automatically make sums of squares uncorrelated

Suppose Yi=β1Xi1+β2Xi2+εiY_i=\beta_1X_{i1}+\beta_2X_{i2}+\varepsilon_i where E(εi)=0,Var⁡(εi)=σ2E(\varepsilon_i)=0, \operatorname{Var}(\varepsilon_i)=\sigma^2, i=1,2,3i=1,2,3 and Xi1=i−4,i=1,2,3X_{i1}=i-4, i=1,2,3; Xi2=i−2,i=1,2X_{i2}=i-2, i=1,2 and Xi2=iX_{i2}=i for i=3i=3. A least-squares fit is carried out and sum of squares are calculated then:

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