Question

Bivariate data obtained for the paired variables x and y are shown below, in the table labelled Sample data. These data are
1. The least-squares regression line given above is said to be a line which best fits the sample data. The term best fits
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Solution :

(a). The least square regression line given in the question is said to be a line which "best fits" tha sample data. The term "best fits" used because the line has an equation that minimizes the variation from least sqaure regression line which for these data is 1.1587.

(b). For the data point (0.8, 2.1), the value of residual is, y - y^.

y^ = 0.94 + 0.89*0.8 = 1.652. So the residual is, y - y^ = 2.1 - 1.652 = 0.448  \approx 0.045. Residual at point (0.8, 2.1) is, 0.45.

(c). The total variation in sample y values is given by the sample data, which for this data is, 10.1520.

(d). The proportion of total variation in the sample y values that can be explained by the Linear relationship between the x and y is, R-squared = SSR / SST = Sum( y^- y.bar)^2 / Sum(y - y.bar)^2 = 8.9669 / 10.1520 = 0.88326  \approx 0.88.

The proportion of total variation in the sample y values that can be explained by the Linear relationship between the x and y is, 0.88.

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