How do you show that the point of averages (x,y) lies on the estimated regression line?
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To get you started: $\bar y = 1/n \sum y_i = 1/n \sum (\hat y_i + \hat \epsilon_i)$ then plug in, how the $\hat y_i$ are estimated by the $x_i$ and you're almost done. EDIT: since no one replied, here the rest for sake of completeness:
the $\hat y_i$ are estimated by $\hat y_i=\hat \beta_0 + \hat \beta_1 x_{i1} + \ldots + \hat \beta_n x_{in} + \hat \epsilon_i$, so you get $\bar y = 1/n \sum \hat \beta_0 + \hat \beta_1 x_{i1} + \ldots + \hat \beta_n x_{in}$ (the $\hat \epsilon_i$ sum to zero) and finally: |
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