TUTORIAL Simple Regression

1.Executives of a video rental chain want to predict the success of a potential new store. The company’s researcher
Begins by gathering information on number of rentals and average family income from several of the chain’s
Present outlets.
Rentals Average Family Income ($1,000)
710 65
529 43
314 29
504 47
619 52
428 50
317 46
205 29
468 31
545 43
607 49
694 64
Develop a regression model to predict the number of rentals per day by the average family income.

2.People in the aerospace industry believe the cost of a space project is a function of the weight of the major
object being sent into space. Use the following data to develop a regression model to predict the cost of a space
project by the weight of the space object. Determine Co efficient of determination and se.
Weight (tons) Cost ($ millions)
1.897 53.6
3.019 184.9
0.453 6.4
0.988 23.5
1.058 33.4
2.100 110.4
2.387 104.6

3.The following data represent a breakdown of state banks and all savings organizations in the United States every
5 years over a 60-year span according to the Federal Reserve System.
Time Period State Banks All Savings
1 1342 2330
2 1864 2667
3 1912 3054
4 1847 3764
5 1641 4423
6 1405 4837
7 1147 4694
8 1046 4407
9 997 4328
10 1070 3626
11 1009 2815
12 1042 2030
13 992 1779

Develop a regression model to predict the total number of state banks by the number of all savings organizations.
Comment on the strength of the model

4. An article in the Tappi Journal (March 1986) presented data on green liquor Na2S concentration (in grams per
liter) and paper machine production (in tons per day). The data (read from a graph) follow:
y 40 42 49 46 44 48
x 825 830 890 895 890 910
y 46 43 53 52 54 57 58
x 915 960 990 1010 1012 1030 1050
Fit a simple linear regression model with y = green liquor
Na2S concentration and x = production

5. An article in the Journal of Environmental Engineering (1989, Vol. 115(3), pp. 608–619) reported the
results of a study on the occurrence of sodium and chloride in surface streams in central Rhode Island.
The following data are chloride concentration y (in milligrams per liter) and roadway area in the
watershed x (in percentage).
y 4.4 6.6 9.7 10.6 10.8 10.9
x 0.19 0.15 0.57 0.70 0.67 0.63
y 11.8 12.1 14.3 14.7 15.0 17.3
x 0.47 0.70 0.60 0.78 0.81 0.78
Fit the simple linear regression model using the method of least squares. Find the fitted value
corresponding to x = 0.47 and the associated residual.

6. An article in the Journal of the Environmental Engineering Division [“Least Squares Estimates of BOD
Parameters”(1980, Vol. 106, pp. 1197–1202)] took a sample from the Holston River below Kingport,
Tennessee, during August 1977. The biochemical oxygen demand (BOD) test is conducted over a period
of time in days. The resulting data follow:
Time (days): 1 2 4 6 8 10 12 14 16 18 20
BOD (mg/liter): 0.6 0.7 1.5 1.9 2.1 2.6 2.9 3.7 3.5 3.7 3.8
Assuming that a simple linear regression model is appropriate, fit the regression model relating BOD (y)
to the time. What is the estimate of expected BOD level when the time is 15 days?