[Solved] In the simple linear regression model y=β_0+β_1 x+u, suppose that E(u) ≠q 0. Letting α_0=E(u), show that the model can always


Question: In the simple linear regression model \(y=\beta_{0}+\beta_{1} x+u\), suppose that \(\mathrm{E}(u) \neq 0\). Letting \(\alpha_{0}=E(u)\), show that the model can always be rewritten with the same slope, but a new intercept and error, where the new error has a zero expected value.

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