# Exercise: Statistical inference in a linear model

# Objective

This exercise is designed to show the students that they already have the tools they need for inference in regression models.

# Exercise

## Setup

Consider the following plots (call the left panel A and the right panel B).

## Questions

- Draw the best linear model to fit each data set.
- In which model are you more confident? Why?
- How might you estimate the variance of the random error terms, and how does this connect to question 2? How many degrees of freedom are used for this estimate?
- Finally, guess what distribution the estimates of slope and intercept would follow (after appropriate centering and scaling).