Question

The data below shows age (x, in years) and weekly entertainment expenses (y, in dollars) for a random sample of ten adults. Use Excel 6 to find the slope and y-intercept for the least squares regression line Enter your answers as decimals rounded to three places. Enter a"" sign directly before any negative answer Slope. Y-Intercept- Entertainment expenses 197 215 85 242 159 235 192 229 195 135 Age 42 61 21 28 30 23 45 47

Answer 1

The statistical software output for this problem is:

Simple linear regression results:
Dependent Variable: Entertainment expenses
Independent Variable: Age
Entertainment expenses = 313.90375 - 3.2598378 Age
Sample size: 10
R (correlation coefficient) = -0.89791539
R-sq = 0.80625204
Estimate of error standard deviation: 23.050272

Parameter estimates:

Parameter	Estimate	Std. Err.	Alternative	DF	T-Stat	P-value
Intercept	313.90375	22.94061	? 0	8	13.683322	<0.0001
Slope	-3.2598378	0.5649814	? 0	8	-5.7698144	0.0004

Analysis of variance table for regression model:

Source	DF	SS	MS	F-stat	P-value
Model	1	17687.88	17687.88	33.290758	0.0004
Error	8	4250.5202	531.31502
Total	9	21938.4

Hence,

The regression equation will be:

Slope = -3.260

y - Intercept = 313.904