Consider a problem of multiple linear regression in which a patient’s reaction Y to a new drug B is to be related to her reaction X1 to a standard drug A and her heart rate x2. Suppose that, for all values X1 = x1 and x2 = x2, the regression function has the form E(Y) = β0 + β1x1+ β2x2, and the values of 10 sets of observations (xi1, xi2, Yi) are given in Table 11.2 on page 696. Under the standard assumptions of multiple linear regressions, determine the values of the M.L.E.’s ˆ β0, ˆ β1, ˆ β2, and ˆσ 2.
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