Course: Research Tools For Business Decision Making

Class : I year B.Com.LL.B (Hons)

Date : 11.05.2020
Name: M.Shunmalar

Roll no: BC0190044

Assignment - IV

From the following data obtain the two regression equations:

SALES 91 97 108 121 67 124 51 73 111 57

PURCHASE 71 75 69 97 70 91 39 61 80 47

Solution:

Calculation of Regression Equations

̅)
(X-𝑿 ̅)
(Y-𝒀
SALES PURCHASE
̅ = 90
𝑿 x2 ̅ = 𝟕𝟎
𝒀 y2 xy
X Y
x y

91 +1 1 71 +1 1 +1

97 +7 49 75 +5 25 +35

108 +18 324 69 -1 1 -18

121 +31 961 97 +27 729 +837

67 -23 529 70 0 0 0

124 +34 1156 91 +21 441 +714

51 -39 1521 39 -31 961 +1209

73 -17 289 61 -9 81 +153

 111 +21 441 80 +10 100 +210

57 -33 1089 47 -23 529 +759

𝚺𝐗 𝚺𝐱𝐲
= 𝟗𝟎𝟎 𝚺𝐱 = 𝟎 𝚺𝐱 𝟐 = 𝟔𝟑𝟔𝟎 𝚺𝐘 = 𝟕𝟎𝟎 𝚺𝐲 = 𝟎 𝚺𝐲 𝟐 = 𝟐𝟖𝟔𝟖 = 𝟑𝟗𝟎𝟎

̅ = bxy(Y-𝑌
Regression equation of X on Y: X-𝑋 ̅)

̅ = Σ𝑋 =
𝑋
900
= 90
N 10

Σ𝑌 700
̅=
𝑌 = = 70
𝑁 10

Σ𝑋 3900
bxy = = = 1.36
Σy2 2868

X-90 = 1.36 (Y-70)

X-90 = 1.36Y - 95.2 (or) X = -5.2 + 1.36Y

̅ = byx (X-𝑋
Regression equation of Y on X: Y-𝑌 ̅)

Σ𝑥𝑦 3900
byx = = = 0.613
Σx2 6360

Y-70 = 0.613(X-90)

Y-70 = 0.613X - 55.17 (or) Y = 14.83+0.613X

X-90 = 1.36Y - 95.2 (or) X = -5.2 + 1.36Y

Y-70 = 0.613X - 55.17 (or) Y = 14.83+0.613X