Chapter 13, Problem 13.15AC

Find the equation of the regression line for the following data set. x 1 2 3 y 0 3 4

The director of a local Tourism Authority would like to know whether a family’s annual expenditure on recreation (y), measured in $000s, is related to their annual income (x), also measured in $000s. In order to explore this potential relationship, the variables x and y were recorded for 10 randomly selected families that visited the area last year. The results were as follows: Week 1 2 3 4 5 6 7 8 9 10 x 41.2 50.1 52.0 62.0 44.5 37.7 73.5 37.5 56.7 65.2 y 2.4 2.7 2.8 8.0 3.1 2.1 12.1 2.0 3.9 8.9 The summary statistics for these data are: Sum of x data: 520.4 Sum of the squares of x data: 28431.42 Sum of y data: 48 Sum of the squares of y data: 343.74 Sum of the products of x and y data: 2858.63 (i) Draw a scatter diagram of these data.

The director of a local Tourism Authority would like to know whether a family’s annual expenditure on recreation (y), measured in $000s, is related to their annual income (x), also measured in $000s. In order to explore this potential relationship, the variables x and y were recorded for 10 randomly selected families that visited the area last year. The results were as follows: Week 1 2 3 4 5 6 7 8 9 10 x 41.2 50.1 52.0 62.0 44.5 37.7 73.5 37.5 56.7 65.2 y 2.4 2.7 2.8 8.0 3.1 2.1 12.1 2.0 3.9 8.9 The summary statistics for these data are: Sum of x data: 520.4 Sum of the squares of x data: 28431.42 Sum of y data: 48 Sum of the squares of y data: 343.74 Sum of the products of x and y data: 2858.63 Calculate the least squares line of y on x and draw the line on the scatter diagram.