The data below show consumption of chicken and its real price at GIMPA Consumption (Y ) 3 3.15 2.34 2.70 3.4 6.3 3.3 4.2 5. 6 3.7 Price ( X ) 12 14 4.8 13.9 14 .9 18.2 12 14.3 17 .2 16.1 Calculate i. Does the real price of chicken depend on consumption or does consumption depend on the real price of chicken? Do you expect a positive or a negative relationship between these two variables? ii. 2 2 X X Y Y XY , , , , iii. , , and xx yy xy S S S r -correlation coefficient
The data below show consumption of chicken and its real price at GIMPA
Consumption (Y ) 3 3.15 2.34 2.70 3.4 6.3 3.3 4.2 5. 6 3.7
Price ( X ) 12 14 4.8 13.9 14 .9 18.2 12 14.3 17 .2 16.1
Calculate
i. Does the real price of chicken depend on consumption or does consumption depend
on the real price of chicken? Do you expect a positive or a negative relationship
between these two variables?
ii.
2 2 X X Y Y XY , , , ,
iii.
, , and
xx yy xy
S S S r -
iv. Find the least squares regression line by choosing appropriate dependent and
independent variables based on your answer in part iii.
v. Interpret the meaning of the val ues of a and b calculated in part iv.
vi. Plot the
vii. Calculate the r2
2
and explain what it means.
viii. Predict the monthly consumption for a student with 10 Ghana cedis.
ix. Compute the standard deviation of errors.
x. Construct a 90% confidence interval for B.
xi. Test at the 5% significance level whether B is negative.
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