a) Plot a scatter chart from the above data. b) Find the equation of the least square regression line in the form ? = ? + ??. Given the value of ? ??? ? up to 3 decimal places. c) What are the exact interpretations of the estimated regression factors?
Equations and Inequations
Equations and inequalities describe the relationship between two mathematical expressions.
Linear Functions
A linear function can just be a constant, or it can be the constant multiplied with the variable like x or y. If the variables are of the form, x2, x1/2 or y2 it is not linear. The exponent over the variables should always be 1.
ZIMS store sells its products on installments in Karachi. The store decided to investigate the link
between the life of the product and the cost. The data collected from store is shown in Table 1.1:
Table 1.1
LIFE OF PRODUCT (Years) COST (Thousand Rupees)
3.0 25
3.5 28
4.0 32
4.5 34
5.0 34
3.0 30
5.5 40
4.5 40
4.0 42
3.5 42
6.0 50
7.5 50
8.0 53
8.5 55
a) Plot a scatter chart from the above data.
b) Find the equation of the least square regression line in the form ? = ? + ??.
Given the value of ? ??? ? up to 3 decimal places.
c) What are the exact interpretations of the estimated regression factors?
d) Using your answer of part
(b). Find the cost predicted by the regression line
for ?. ? year’s life of a product.
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