What was going on when I was born?

The Chase Manhattan Bank cut its prime lending rate yesterday for the second time this week, lowering it one-half percentage point, to 18 1/2 percent, but no other major banks followed its lead. Last Monday, when Chase reduced its rate to 19 percent, most of the nation's banks followed. ''Banks are uncertain about the big fluctuations in interest rates and also over near-term Federal Reserve Board monetary policy,'' said David M. Jones, an economist with Aubrey G. Lanston & Company.

A movie review yesterday incorrectly named the theater where ''My Dinner With Andre'' will open. The film begins Sunday at the Lincoln Plaza I.

A New York City police officer was shot at least five times yesterday after being ambushed from behind a parked car by a suspected drug dealer in the East Flatbush section of Brooklyn, the police said. The officer, Thomas J. Kennedy, 23 years old, of Floral Park, Queens, was listed in ''critical but stable'' condition at Kings County Hospital. Doctors said he was expected to live and he was well enough to talk with his wife and, briefly, with Mayor Koch from his bed in the intensive-care unit.

CBS Inc. and the American Telephone and Telegraph Company announced yesterday that they would jointly test a home information system with consumers in Ridgewood, N.J., beginning next autumn. The companies, which said in September that they were planning a marketing test of so-called video-text technology, said the trial would involve 200 Ridgewood households and be conducted in two threemonth phases starting next September. Consumers will participate for free. Video-text systems permit two-way communication between consumers and data bases of information stored in computers. In the Ridgewood experiment, households will be able to select from a variety of continually updated news, weather, sports, education and entertainment material culled from the broadcast and publications units of CBS. Furthermore, the test is expected to permit consumers to bank and shop electronically. Local and national advertising will also be displayed.

World leaders to gather for Sadat funeral A10 Egyptian warns of more blood- shed A10 U.S. bars Libyan U.N. delegate from Washington A11 International Foreign Minister sees "kind of stability" in Iran A2 Walesa supporters elected to Pol- ish union's board A3 Iranians prepares bill to expel Bazargan from Parliament A3 Around the World A5 Antimissile demonstration is readied in Bonn A6 Israelis hope for accord soon on military cooperation with U.S. A8 Canada says half of acid rain there is from polluters A9 Government/Politics Washington leaders upset over Congressional interference A17 Pentagon plan new warhead to in- crease MX missile power A18 U.S. panel asks lie tests to broaden access to secret data A23 Washington Talk Briefing A24 Justice O'Connor brings a differ- ence to the Supreme Court A24 The Republican Party's money isn't bringing it pure happiness A24 General Around the Nation A12 Chapels of Cal ifornia youth cor- rection sch ools bugged A22 China legal scholar leaves ivory tower and enters fray B3 Health/Science Scientists studying data linked to occurrence of earthquakes A15 Features/Notes Notes on People B9 Sports People B16 Weekend Weekender Guide C1 Where to view the fall foliage close to home C1 Metropolitan Baedeker: New London and Groton C1 Theater: Broadway C2 "Double Feature" at St. Peter's C3 Screen: At the Movies C8 Bertrand Blier's "Beau Pere" C10 "Rich and Famous," with Misses Bisset and Bergen C16 Music: All-night jazz at St. Peter's C1 Juilliard celebrates 35th year C3 Dorothy Donegan settles in at Michael's Pub C7 Art: Pousette-Dart works on view C23 Auctions C24 Noortman & Brod, European Masters gallery, opens C23 American art at Hirschl & Adler C26 Books: Publishing C28 "From Bauhaus to Our House" by Tom Wolfe reviewed C29 Restaurants C20 TV Weekend C31 Style The Evening Hours B10 Milan finale: Touches of whimsy B10 Three new Maxim's planned for the United States B10 Obituaries Frederic Theodore Kirkham Jr., medical director of Time Inc B13 Sports Yanks top Brewers, 3-0, and lead series by 2 games to 0 B15 Expos win second in row from Phils, 3-1 B15 Unser declared winner of Indy 500 B15 Pleasant Colony to miss Gold Cup B15 Hull abandons comeback bid with Rangers B15 Giants and Jets face divisional rivals Sunday B17 Taylor learning Jets' system B17 Astros try for series clincher against Dodgers today B18 Whalers tie Canadiens, 5-5 B18 Dave Anderson on Ron Davis and Goose Gossa ge B19 News Analysis William E. Farrell discusses Mubarak's Egypt A11 Edward B. Fiske on donor-univer- sity relations A16 Jane Perlez on advertising in Jer- sey campaign for Governor B2 Editorials/Letters/Op-Ed Editorials A30 The B-1 is a bomb An oil "glut" that raises prices Before the ballot Peter Passell: a tax rise? Letters A30 Tom Wicker: a new security mania A31 Flora Lewis: Nicaragua on a tightrope A31 John Ehrlichman: on First Family affairs A31 C.D. Rawicz: United Nations principle (so-called) A31 Mark Hertsgaard: nuclear Reaganomics A31

The Long Island Lighting Company is seeking $2 million in damages in a suit against members of an antinuclear group that tried to halt work on the nuclear power plant at Shoreham, L.I., last fall. A Lilco spokesman said the suit - in which the utility, joined by several construction unions, is also seeking a permanent injunction against attempts to blockade the plant - was necessary to protect ratepayers and workers at the plant. ''These demonstrators, a small group of people, have caused our ratepayers -a large group that does not agree with them - to incur expenses, and that is very unfair,'' said the spokesman, June Bruce. The expenses included additional fencing, overtime for key personnel, cleanup and other security costs, she said.

IF you like whales and submarines, you'll love New London and Groton. The two old port cities in southeastern Connecticut still cling to the sea that has shaped their history and has brought them good times as well as bad. These days the most prominent ties to the sea are nuclear submarines instead of whaling boats and fresh-faced cadets at the Coast Guard Academy instead of grizzled sailors in the saloons on Bank Street. But New London and Groton have made major efforts in recent years to preserve the best of their pasts. A visitor with a car and walking shoes can find some surprising touches of national, maritime and theatrical history in these cities on the opposite banks of the Thames River. As Edmund said in Eugene O'Neill's ''Long Day's Journey Into Night,'' whose setting was the O'Neill cottage that still stands on New London's Pequot Avenue: ''Well, it's better than spending the summer in a New York hotel, isn't it? And this town's not so bad. I like it well enough. I suppose it's the only home we've ever had.''

President Reagan today invited Egypt's new leader, Hosni Mubarak, to visit the United States next year, and the three living former American Presidents departed to attend the funeral of Anwar el-Sadat. Mr. Reagan greeted the three -Jimmy Carter, Gerald R. Ford and Richard M. Nixon - when they arrived on the South Lawn of the White House by helicopter at dusk. In what White House aides said was probably the largest gathering of American chief executives in recent years, they conferred for half an hour before the former Presidents left for Andrews Air Force Base to begin the 12-hour flight to Cairo. Their departure at 7:47 P.M. brought to a close a day filled with tributes to Mr. Sadat and with efforts to shore up the Government of his designated successor, Vice President Mubarak. Part of that effort was the invitation to Mr. Mubarak, extended in a White House meeting with Ambassador Ashraf Ghorbal of Egypt, to whom the President also spoke of his personal feelings about Mr. Sadat.

An article in Business Day on Oct. 6 incorrectly reported Laker Airways' unrestricted one-way economy fare between New York and London effec- tive Nov. 1. It will be $261, matching the fare anno unced by Pan American World Airways also effective Nov. 1.

''Nuclear power has become entangled in a morass of regulations that do not enhance safety but that do cause extensive licensing delays and economic uncertainty.''

The United States Steel Corporation, signaling the end of a truce over imports, has told the Congressional steel caucus that it is about to file a huge complaint alleging unfair trade practices against foreign steel producers. Industry sources reported that the petition, to be filed before the International Trade Commission, would charge that foreign producers were dumping steel here at unfairly low prices and were selling steel that was heavily subsidized by their governments. Producers from Europe as well as those from South Africa, Taiwan, Brazil, Mexico and South Korea are expected to be named. Reports of Output Drop The contemplated action comes on the heels of reports of declining steel production, rising layoffs and surging imports. If initiated, it will confront the Reagan Administration with its most important trade policy test since it induced Japan to curb auto shipments voluntarily instead of bowing to pressure from domestic auto makers to impose import restrictions.

At the best Warsaw restaurants, the sort that foreigners frequent, the check always arrives covered by a snowy white napkin. A good meal of sour herring, roast venison, apple strudel and Hungarian red wine costs about 1,000 zlotys, or $30, using the official exchange rate of 34 zlotys to the dollar. But the maitre d' will be delighted if a diner just slips a $5 bill under the napkin instead. The reason is not because a dollar is now worth 320 to 360 zlotys on the flourishing black market, up nearly 100 percent so far this year. After all, Poles generally do not want to acquire more zloty notes, which buy little in this country of empty shops, long lines and stringent rationing.