ΣX | ΣY | Σ(x-x̅)² | Σ(y-ȳ)² | Σ(x-x̅)(y-ȳ) | |
total sum | 100.00 | 74.00 | 250.00 | 306.40 | 187.00 |
mean | 10.00 | 7.40 | SSxx | SSyy | SSxy |
Sample size, n = 10
here, x̅ = Σx / n= 10.000
ȳ = Σy/n = 7.400
SSxx = Σ(x-x̅)² = 250.0000
SSxy= Σ(x-x̅)(y-ȳ) = 187.0
estimated slope , ß1 = SSxy/SSxx = 187/250=
0.7480
intercept,ß0 = y̅-ß1* x̄ = 7.4- (0.748
)*10= -0.0800
Regression line is, Ŷ= -0.080 +
( 0.748 )*x
SSE= (SSxx * SSyy - SS²xy)/SSxx =
166.5240
std error ,Se = √(SSE/(n-2)) =
4.5624
correlation coefficient , r = SSxy/√(SSx.SSy)
= 0.67566
Ho: β1= 0
H1: β1╪ 0
n= 10
alpha = 0.1
estimated std error of slope =Se(ß1) = Se/√Sxx =
4.5624/√250= 0.2886
t stat = estimated slope/std error =ß1 /Se(ß1) =
(0.748-0)/0.2886= 2.59
Degree of freedom ,df = n-2= 8
t-critical value= 1.8595 [excel function:
=T.INV.2T(α,df) ]
p-value = 0.0320
decison : p-value<α , reject Ho
Conclusion: Reject Ho and conclude that slope is
significantly different from zero
Hence there is correlation
b)
X Value= 16
Confidence Level= 90%
Sample Size , n= 10
Degrees of Freedom,df=n-2 = 8
critical t Value=tα/2 = 1.860 [excel
function: =t.inv.2t(α/2,df) ]
X̅ = 10.00
Σ(x-x̅)² =Sxx 250.00
Standard Error of the Estimate,Se= 4.5624
Predicted Y at X= 16 is
Ŷ= -0.08000 +
0.74800 *16= 11.888
standard error, S(ŷ)=Se*√(1/n+(X-X̅)²/Sxx) =
2.254
margin of error,E=t*Std error=t* S(ŷ) =
1.8595 * 2.254 =
4.1908
Confidence Lower Limit=Ŷ +E = 11.888
- 4.191 = 7.6972
Confidence Upper Limit=Ŷ +E = 11.888
+ 4.191 = 16.0788
Please let me know in case of any doubt.
Thanks in advance!
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