Question

An article in Technometrics by S. C. Narula and J. F. Wellington [“Prediction, Linear Regression, and a Minimum Sum of Relative Errors” (Vol. 19, 1977)] presents data on the selling price and annual taxes for 24 houses. The data are shown in the following table.

Taxes Sale (Local, School), Price/1000 CountyV1000 25.9 4.9176 29.5 5.0208 27.9 4.5429 25.9 4.5573 29.9 5.0597 29.9 3.8910 30.9 5.8980 28.9 5.6039 35.9 5.8282 31.5 5.3003 31.0 6.2712 30.9 5.9592 Taxes Sale (Local, School), Price/1000 County)/1000 30.0 5.0500 36.9 8.2464 41.9 6.6969 40.5 7.7841 43.9 9.0384 37.5 5.9894 37.9 7.5422 44.5 8.7951 37.9 6.0831 38.9 8.3607 36.9 8.1400 45.8 9.1416

Use the data to obtain a least squares fit relating selling price to taxes paid (independent variable is taxes and selling price is dependent variable). What is the estimate of the y intercept?

What is the slope

Answer 1

Answer Date: 10/11/2019 The least squares regression equation of selling price (v) on taxes (x) is, 1) By using Excel software, find regression equation with help of following steps: Import the data. 2). Select Data Analysis from Data menu. 3) Select Regression and click Ok. Input Y Range and Input X range. Click Ok. Intercept Coefficients Standard Errort Stat P-value 13.4619158 2.651563639 5.076973 4.37E-05 3.292799508 0.401292266 8.20549 3.86E-08 From the Excel output, the least squares regression equation of selling price (v) on taxes (x) is, j= Be + B. x = 13.4619 +3.2928 x The estimate of y intercept is 13.4619 and the slop is 3.2928.