DEVINE CAGADAS

MS AMS
AMS 532 General Linear Models

11.4 Auditors are often required to compare the audited (or current) value of an inventory item with book (or
listed) value. If a company is keeping its inventory and books up to date, there should be a strong linear
relationship between the audited and book values. A company sampled ten inventory items and obtained the
audited and book values given in the accompanying table. Fit the model 𝑌 = 𝛽0 + 𝛽1 𝑥 to these data.

Item Audit Value (𝑦𝑖 ) Book Value (𝑥𝑖 )

1 9 10
2 14 12
3 7 9
4 29 27
5 45 47
6 109 112
7 40 36
8 238 241
9 60 59
10 170 167
Answer:

𝑦𝑖 𝑥𝑖 𝑥𝑖 𝑦𝑖 𝑥𝑖 2
9 10 90 100
14 12 168 144
7 9 63 81
29 27 783 729
45 47 2115 2209
109 112 12208 12544
40 36 1440 1296
238 241 57358 58081
60 59 3540 3481
170 167 28390 27889
𝒏 𝒏 𝒏 𝒏

∑ 𝒚𝒊 = 𝟕𝟐𝟏 ∑ 𝒙𝒊 = 𝟕𝟐𝟎 ∑ 𝒙𝒊 𝒚𝒊 = 𝟏𝟎𝟔𝟏𝟓𝟓 ∑ 𝒙𝒊 𝟐 = 𝟏𝟎𝟔𝟓𝟓𝟒

𝒊=𝟏 𝒊=𝟏 𝒊=𝟏 𝒊=𝟏
𝑛
1 1
̅ = ∑ 𝑥𝑖 = ( ) (720) = 𝟕𝟐
𝒙
𝑛 𝑛
𝑖=1
𝑛
1 1
̅ = ∑ 𝑦𝑖 = ( ) (721) = 𝟕𝟐. 𝟏
𝒚
𝑛 𝑛
𝑖=1
𝑛 𝑛 𝑛 𝑛
1
𝑺𝒙𝒚 = ∑(𝑥𝑖 − 𝑥̅ )(𝑦𝑖 − 𝑦̅) = ∑ 𝑥𝑖 𝑦𝑖 − ∑ 𝑥𝑖 ∑ 𝑦𝑖
𝑛
𝑖=1 𝑖=1 𝑖=1 𝑖=1
1
𝑺𝒙𝒚 = 106155 − (720)(721) = 106155 − 51912 = 𝟓𝟒, 𝟐𝟒𝟑
10
𝑛 𝑛 𝑛 2
2 2
1
𝑺𝒙𝒙 = ∑(𝑥𝑖 − 𝑥̅ ) = ∑ 𝑥𝑖 − (∑ 𝑥𝑖 )
𝑛
𝑖=1 𝑖=1 𝑖=1
1 2
𝑺𝒙𝒙 = 106554 − (720) = 106554 − 51840 = 𝟓𝟒, 𝟕𝟏𝟒
10
𝑺𝒙𝒚 54243
̂𝟏 =
𝜷 = = 𝟎. 𝟗𝟗𝟏𝟑𝟗
𝑺𝒙𝒙 54714
̂𝟎 = 𝒚
𝜷 ̅−𝜷 ̂𝟏 𝒙
̅ = 72.1 − (0.99139)(72) = 72.1 − 71.38 = 𝟎. 𝟕𝟐

̂𝟎 + 𝜷
̂=𝜷
Given that 𝒚 ̂𝟏 𝒙 then 𝒚
̂ = 𝟎. 𝟕𝟐 + 𝟎. 𝟗𝟗𝒙
If 𝒙 = 𝟏𝟎𝟎 then 𝒚̂ = 0.72 + 0.99(100) = 0.72 + 99 = 𝟗𝟗. 𝟕𝟐
11.5 What did housing prices look like in the “good old days”? The median sale prices for new single-family
houses are given in the accompanying table for the years 1972 through 1979. Letting 𝑌 denote the median sales
price and 𝑥 the year (using integers 1,2, … ,8), fit the model 𝑌 = 𝛽0 + 𝛽1 𝑥 + 𝜀. What can you conclude from
the results?
Year Median Sales Price (× 1000)
1972 (1) $27.6
1973 (2) $32.5
1974 (3) $35.9
1975 (4) $39.3
1976 (5) $44.2
1977 (6) $48.8
1978 (7) $55.7
1979 (8) $62.9

Answer:

𝑦𝑖 𝑥𝑖 𝑥𝑖 𝑦𝑖 𝑥𝑖 2
27.6 1 27.6 1
32.5 2 65 4
35.9 3 107.7 9
39.3 4 157.2 16
44.2 5 221 25
48.8 6 292.8 36
55.7 7 389.9 49
62.9 8 503.2 64
𝒏 𝒏 𝒏 𝒏

∑ 𝒚𝒊 = 𝟑𝟒𝟔. 𝟗 ∑ 𝒙𝒊 = 𝟑𝟔 ∑ 𝒙𝒊 𝒚𝒊 = 𝟏𝟕𝟔𝟒. 𝟒 ∑ 𝒙𝒊 𝟐 = 𝟐𝟎𝟒

𝒊=𝟏 𝒊=𝟏 𝒊=𝟏 𝒊=𝟏
𝑛
1 1
̅ = ∑ 𝑥𝑖 = ( ) (36) = 𝟒. 𝟓
𝒙
𝑛 8
𝑖=1
𝑛
1 1
̅ = ∑ 𝑦𝑖 = ( ) (346.9) = 𝟒𝟑. 𝟑𝟔𝟐𝟓
𝒚
𝑛 8
𝑖=1
𝑛 𝑛 𝑛 𝑛
1
𝑺𝒙𝒚 = ∑(𝑥𝑖 − 𝑥̅ )(𝑦𝑖 − 𝑦̅) = ∑ 𝑥𝑖 𝑦𝑖 − ∑ 𝑥𝑖 ∑ 𝑦𝑖
𝑛
𝑖=1 𝑖=1 𝑖=1 𝑖=1
1
𝑺𝒙𝒚 = 1764.4 − (36)(346.9) = 1764.4 − 1561.05 = 𝟐𝟎𝟑. 𝟑𝟓
8
𝑛 𝑛 𝑛 2
2 2
1
𝑺𝒙𝒙 = ∑(𝑥𝑖 − 𝑥̅ ) = ∑ 𝑥𝑖 − (∑ 𝑥𝑖 )
𝑛
𝑖=1 𝑖=1 𝑖=1
1 2
𝑺𝒙𝒙 = 204 − (𝟑𝟔) = 204 − 162 = 𝟒𝟐
8
𝑺𝒙𝒚 203.35
̂𝟏 =
𝜷 = = 𝟒. 𝟖𝟒𝟐
𝑺𝒙𝒙 42
̂𝟎 = 𝒚
𝜷 ̅−𝜷 ̂𝟏 𝒙
̅ = 43.3625 − (4.8416667)(4.5) = 43.3625 − 21.7875 = 𝟐𝟏. 𝟓𝟕𝟓

̂𝟎 + 𝜷
̂=𝜷
Given that 𝒚 ̂𝟏 𝒙 then 𝒚
̂ = 𝟐𝟏. 𝟓𝟕𝟓 + 𝟒. 𝟖𝟒𝟐𝒙

̂𝟏 is equal to 𝟒. 𝟖𝟒𝟐 multiply by 1000.

It will have an annual increase of $ 4,842.00, since 𝜷

11.17 a. Calculate 𝑆𝑆𝐸 and 𝑆 2 for Exercise 11.5

b. It is sometimes convenient, for computational purposes, to have 𝑥-values spaced symmetrically and
equally about zero. The 𝑥-values can be rescaled (or coded) in any convenient manner, with no loss of
 information in the statistical analysis. Refer to Exercise 11.5. Code the 𝑥-values (originally given on
the scale of 1 to 8) by using the formula
𝑥 − 4.5
𝑥∗ =
.5
Then fit the model 𝑌 = 𝛽0∗ + 𝛽1∗ 𝑥 ∗ + 𝜀. Calculate 𝑆𝑆𝐸. (Notice that the 𝑥 ∗ -values are integers
symmetrically spaced about zero.) Compute 𝑆𝑆𝐸and compare your answer to the result of part (a).

Answer:
𝑦𝑖 𝑥𝑖 𝑥𝑖 𝑦𝑖 𝑥𝑖 2 𝑦𝑖 2
27.6 1 27.6 1 761.76
32.5 2 65 4 1056.25
35.9 3 107.7 9 1288.81
39.3 4 157.2 16 1544.49
44.2 5 221 25 1953.64
48.8 6 292.8 36 2381.44
55.7 7 389.9 49 3102.49
62.9 8 503.2 64 3956.41

𝒏 𝒏 𝒏 𝒏 𝒏

∑ 𝒚𝒊 = 𝟑𝟒𝟔. 𝟗 ∑ 𝒙𝒊 = 𝟑𝟔 ∑ 𝒙𝒊 𝒚𝒊 = 𝟏𝟕𝟔𝟒. 𝟒 ∑ 𝒙𝒊 𝟐 = 𝟐𝟎𝟒 ∑ 𝒚𝒊 𝟐 = 𝟏𝟔𝟎𝟒𝟓. 𝟐𝟗

𝒊=𝟏 𝒊=𝟏 𝒊=𝟏 𝒊=𝟏 𝒊=𝟏

a.
𝑛 𝑛 𝑛 2
1
𝑺𝒚𝒚 = ∑(𝑦𝑖 − 𝑦̅)2 = ∑ 𝑦𝑖 2 − (∑ 𝑦𝑖 )
𝑛
𝑖=1 𝑖=1 𝑖=1
1 2
𝑺𝒚𝒚 = 16045.29 − (346.9) = 16045.29 − 15042.45125 = 𝟏𝟎𝟎𝟐. 𝟖𝟑𝟖𝟖
8
̂𝟏 = 𝟒. 𝟖𝟒𝟏𝟔𝟔 … ~𝟒. 𝟖𝟒𝟐 and 𝑺𝒙𝒚 = 𝟐𝟎𝟑. 𝟑𝟓
𝜷
𝑺𝑺𝑬 = 𝑆𝑦𝑦 − 𝛽̂1 𝑆𝑥𝑦 = 1002.8388 − (4.84166)(203.35) = 1002.8388 − 984.5516 = 𝟏𝟖. 𝟐𝟖𝟔
𝑆𝑆𝐸 18.286
𝑺𝟐 = = = 𝟑. 𝟎𝟒𝟕𝟖𝟕
𝑛−2 8−2
b.
𝑦𝑖 𝑦𝑖 2 𝑥𝑖 ∗ 𝑥𝑖∗ 𝑦𝑖 𝑥𝑖∗
2

27.6 761.76 -7 -193.2 49

32.5 1056.25 -5 -162.5 25
35.9 1288.81 -3 -107.7 9
39.3 1544.49 -1 -39.3 1
44.2 1953.64 1 44.2 1
48.8 2381.44 3 146.4 9
55.7 3102.49 5 278.5 25
62.9 3956.41 7 440.3 49
𝒏 𝒏 𝒏 𝒏 𝒏
𝟐
∑ 𝒚𝒊 = 𝟑𝟒𝟔. 𝟗 ∑ 𝒚𝒊 = 𝟏𝟔𝟎𝟒𝟓. 𝟐𝟗 ∑ 𝒙𝒊 = 𝟐 ∗
𝟎 ∑ 𝒙∗𝒊 𝒚𝒊 = 𝟒𝟎𝟔. 𝟕 ∑ 𝒙∗𝒊 = 𝟏𝟔𝟖
𝒊=𝟏 𝒊=𝟏 𝒊=𝟏 𝒊=𝟏 𝒊=𝟏
𝑛
1 1
̅̅̅
𝑥 ∗ = ∑ 𝑥 ∗ 𝑖 = ( ) (0) = 𝟎
𝑛 8
𝑖=1
𝑛
1 1
̅ = ∑ 𝑦𝑖 = ( ) (346.9) = 𝟒𝟑. 𝟑𝟔𝟐𝟓
𝒚
𝑛 8
𝑖=1
𝑛 𝑛 𝑛 𝑛
1
𝑺𝒙∗ 𝒚 = ∑(𝑥𝑖∗ − ̅̅̅
𝑥 ∗ )(𝑦𝑖 − 𝑦̅) = ∑ 𝑥𝑖∗ 𝑦𝑖 − ∑ 𝑥𝑖∗ ∑ 𝑦𝑖
𝑛
𝑖=1 𝑖=1 𝑖=1 𝑖=1
1
𝑺𝒙∗ 𝒚 = 406.7 − (0)(346.9) = 406.7 − 0 = 𝟒𝟎𝟔. 𝟕
8
 𝑛 𝑛 𝑛 2
2 1
𝑺𝒙∗ 𝒙∗ = ∑(𝑥𝑖∗ − ̅̅̅
𝑥 ∗ )2 = ∑ 𝑥𝑖∗ − (∑ 𝑥𝑖∗ )
𝑛
𝑖=1 𝑖=1 𝑖=1
1
𝑺𝒙∗ 𝒙∗ = 168 − (0)2 = 168 − 0 = 𝟏𝟔𝟖
8
𝑺𝒙∗ 𝒚 406.7
̂𝟏 =
𝜷 = = 𝟐. 𝟒𝟐
𝑺𝒙∗ 𝒙∗ 168
̂𝟎 = 𝒚
𝜷 ̅−𝜷 ̂𝟏 ̅̅̅
𝒙∗ = 43.3625 − (2.42)(0) = 43.3625 − 0 = 𝟒𝟑. 𝟑𝟔𝟐𝟓

̂𝟎 + 𝜷
̂=𝜷
Given that 𝒚 ̂𝟏 𝒙 then 𝒚
̂ = 𝟒𝟑. 𝟑𝟔𝟐𝟓 + 𝟐. 𝟒𝟐𝒙

𝑛 𝑛 𝑛 2
1
𝑺𝒚𝒚 = ∑(𝑦𝑖 − 𝑦̅)2 = ∑ 𝑦𝑖 2 − (∑ 𝑦𝑖 )
𝑛
𝑖=1 𝑖=1 𝑖=1
1 2
𝑺𝒚𝒚 = 16045.29 − (346.9) = 16045.29 − 15042.45125 = 𝟏𝟎𝟎𝟐. 𝟖𝟑𝟖𝟖
8
̂𝟏 = 𝟐. 𝟒𝟐𝟎𝟖𝟑𝟑~𝟐. 𝟒𝟐 and 𝑺𝒙𝒚 = 𝟒𝟎𝟔. 𝟕
𝜷
𝑺𝑺𝑬 = 𝑆𝑦𝑦 − 𝛽̂1 𝑆𝑥 ∗ 𝑦 = 1002.8388 − (2.420833)(406.7) = 1002.8388 − 984.5527 = 𝟏𝟖. 𝟐𝟖𝟔
𝑆𝑆𝐸 18.286
𝑺𝟐 = = = 𝟑. 𝟎𝟒𝟕𝟖𝟕
𝑛−2 8−2

It has the same SSE and 𝑆 2 with part (a).

11.18 a. Calculate 𝑆𝑆𝐸 and 𝑆 2 for Exercise 11.8

b. Refer to Exercise 11.8 Code the 𝑥-values in a convenient manner and fit a simple linear model to the
LC50 measurements presented there. Compute 𝑆𝑆𝐸 and compare your answer to the result of part (a).

Answer:
a.
Toxicant LC50 Flow-Through (𝑦) LC50 Static (𝑥)
1 23.00 39.00
2 22.30 37.50
3 9.40 22.20
4 9.70 17.50
5 .15 .64
6 .28 .45
7 .75 2.62
8 .51 2.63
9 28.00 32.00
10 .39 .77
𝑦𝑖 𝑥𝑖 𝑥𝑖 𝑦𝑖 𝑥𝑖 2 𝑦𝑖 2
23.00 39.00 897 1521 529
22.30 37.50 836.25 1406.25 497.29
9.40 22.20 208.68 492.84 88.36
9.70 17.50 169.75 306.25 94.09
.15 .64 0.096 0.4096 0.0225
.28 .45 0.126 0.2025 0.0784
.75 2.62 1.965 6.8644 0.5625
.51 2.36 1.3413 6.9169 0.2601
28.00 32.00 896 1024 784
.39 .77 0.1463 0.5929 0.1521
𝒏 𝒏 𝒏 𝒏 𝒏

∑ 𝒚𝒊 = 𝟗𝟒. 𝟒𝟖 ∑ 𝒙𝒊 = 𝟏𝟓𝟓. 𝟎𝟓 ∑ 𝒙𝒊 𝒚𝒊 = 𝟑𝟎𝟏𝟏. 𝟑𝟕𝟏 ∑ 𝒙𝒊 = 𝟒𝟕𝟔𝟑. 𝟗𝟕𝟗 ∑ 𝒚𝒊 𝟐 = 𝟏𝟗𝟗𝟑. 𝟖𝟏𝟔

𝟐

𝒊=𝟏 𝒊=𝟏 𝒊=𝟏 𝒊=𝟏 𝒊=𝟏

𝑛
1 1
̅ = ∑ 𝑥𝑖 = ( ) (155.05) = 𝟏𝟓. 𝟓𝟎𝟓
𝒙
𝑛 10
𝑖=1
 𝑛
1 1
̅ = ∑ 𝑦𝑖 = ( ) (94.48) = 𝟗. 𝟒𝟒𝟖
𝒚
𝑛 10
𝑖=1
𝑛 𝑛 𝑛 𝑛
1
𝑺𝒙𝒚 = ∑(𝑥𝑖 − 𝑥̅ )(𝑦𝑖 − 𝑦̅) = ∑ 𝑥𝑖 𝑦𝑖 − ∑ 𝑥𝑖 ∑ 𝑦𝑖
𝑛
𝑖=1 𝑖=1 𝑖=1 𝑖=1
1
𝑺𝒙𝒚 = 3011.371 − (155.05)(94.48) = 3011.371 − 1464.912 = 𝟏𝟓𝟒𝟔. 𝟒𝟓𝟗
10
𝑛 𝑛 𝑛 2
1
𝑺𝒙𝒙 = ∑(𝑥𝑖 − 𝑥̅ )2 = ∑ 𝑥𝑖 2 − (∑ 𝑥𝑖 )
𝑛
𝑖=1 𝑖=1 𝑖=1
1
𝑺𝒙𝒙 = 4765.326 − (155.05)2 = 4765.326 − 2404.05 = 𝟐𝟑𝟓𝟗. 𝟗𝟐𝟗
10
𝑺𝒙𝒚 1546.459
̂
𝜷𝟏 = = = 𝟎. 𝟔𝟓𝟓
𝑺𝒙𝒙 2359.929
̂𝟎 = 𝒚
𝜷 ̅−𝜷 ̂𝟏 𝒙
̅ = 9.448 − (0.655299)(15.505) = 9.448 − 10.15975 = −𝟎. 𝟕𝟏𝟏𝟕𝟓~ − 𝟎. 𝟕𝟏𝟐

̂𝟎 + 𝜷
̂=𝜷
Given that 𝒚 ̂𝟏 𝒙 then 𝒚
̂ = −𝟎. 𝟕𝟏𝟐 + 𝟎. 𝟔𝟓𝟓𝒙
𝑛 𝑛 𝑛 2
1
𝑺𝒚𝒚 = ∑(𝑦𝑖 − 𝑦̅)2 = ∑ 𝑦𝑖 2 − (∑ 𝑦𝑖 )
𝑛
𝑖=1 𝑖=1 𝑖=1
1
𝑺𝒚𝒚 = 1993.816 − (94.48)2 = 1993.816 − 892.647 = 𝟏𝟏𝟎𝟏. 𝟏𝟔𝟖𝟔
10
̂𝟏 = 𝟎. 𝟔𝟓𝟓𝟐𝟓𝟐𝟖 … ~𝟎. 𝟔𝟓𝟓 and 𝑺𝒙𝒚 = 𝟏𝟓𝟒𝟔. 𝟒𝟓𝟗
𝜷
𝑺𝑺𝑬 = 𝑆𝑦𝑦 − 𝛽̂1 𝑆𝑥𝑦 = 1101.1686 − (0.6552528)(1546.459) = 1101.1686 − 1013.259 = 𝟖𝟕. 𝟖𝟒𝟕𝟑
𝑆𝑆𝐸 87.8473
𝑺𝟐 = = = 𝟏𝟎. 𝟗𝟖𝟎𝟗𝟏~𝟏𝟎. 𝟗𝟖
𝑛−2 10 − 2

b. Use the code 𝑥𝑖 ∗ = 𝑥𝑖 − 𝑥̅

𝑦𝑖 𝑥𝑖 ∗ 𝑥𝑖 ∗ 𝑦𝑖 𝑥𝑖 ∗ 2 𝑦𝑖 2
23.00 23.496 540.408 552.062016 529
22.30 21.996 490.5108 483.824016 497.29
9.40 6.696 62.9424 44.836416 88.36
9.70 1.996 19.3612 3.984016 94.09
.15 -14.864 -2.2296 220.938496 0.0225
.28 -15.054 -4.21512 226.622916 0.0784
.75 -12.884 -9.663 165.997456 0.5625
.51 -13.144 -6.70344 172.764736 0.2601
28.00 16.496 461.888 272.118016 784
.39 -14.734 -5.74626 217.090756 0.1521
𝒏 𝒏 𝒏 𝒏 𝒏
𝟐
𝟐
∑ 𝒚𝒊 = 𝟗𝟒. 𝟒𝟖 ∑ 𝒚𝒊 = 𝟏𝟗𝟗𝟑. 𝟖𝟏𝟔 ∑ 𝒙𝒊 = ∗
𝟎 ∑ 𝒙∗𝒊 𝒚𝒊 = 𝟏𝟓𝟒𝟔. 𝟒𝟓𝟗 ∑ 𝒙∗𝒊 = 𝟐𝟑𝟔𝟎. 𝟐𝟑𝟗
𝒊=𝟏 𝒊=𝟏 𝒊=𝟏 𝒊=𝟏 𝒊=𝟏
𝑛
1 1
̅̅̅
𝑥 ∗ = ∑ 𝑥 ∗ 𝑖 = ( ) (0) = 𝟎
𝑛 10
𝑖=1
𝑛
1 1
̅ = ∑ 𝑦𝑖 = ( ) (94.48) = 𝟗. 𝟒𝟒𝟖
𝒚
𝑛 10
𝑖=1
𝑛 𝑛 𝑛 𝑛
1
𝑺𝒙∗ 𝒚 = ∑(𝑥𝑖∗ − ̅̅̅
𝑥 ∗ )(𝑦𝑖 − 𝑦̅) = ∑ 𝑥𝑖∗ 𝑦𝑖 − ∑ 𝑥𝑖∗ ∑ 𝑦𝑖
𝑛
𝑖=1 𝑖=1 𝑖=1 𝑖=1
1
𝑺𝒙∗ 𝒚 = 1546.459 − (0)(94.48) = 1546.459 − 0 = 𝟏𝟓𝟒𝟔. 𝟒𝟓𝟗
10
𝑛 𝑛 𝑛 2
∗ ∗ 2 1 ∗
𝑺𝒙∗ 𝒙∗ = ∑(𝑥𝑖 − ̅̅̅
∗ 2
𝑥 ) = ∑ 𝑥𝑖 − (∑ 𝑥𝑖 )
𝑛
𝑖=1 𝑖=1 𝑖=1
1 2
𝑺𝒙∗ 𝒙∗ = 2360.239 − (0) = 2360.239 − 0 = 𝟐𝟑𝟔𝟎. 𝟐𝟑𝟗
10
 𝑺𝒙∗ 𝒚 1546.459
̂𝟏 =
𝜷 = = 𝟎. 𝟔𝟓𝟓
𝑺𝒙∗ 𝒙∗ 2360.239
̂𝟎 = 𝒚
𝜷 ̅−𝜷 ̂𝟏 ̅̅̅
𝒙∗ = 9.448 − (0.655)(0) = 9.448 − 0 = 9.448

̂𝟎 + 𝜷
̂=𝜷
Given that 𝒚 ̂𝟏 𝒙 then 𝒚
̂ = 𝟗. 𝟒𝟒𝟖 + 𝟎. 𝟔𝟓𝟓𝒙∗

𝑛 𝑛 𝑛 2
1
𝑺𝒚𝒚 = ∑(𝑦𝑖 − 𝑦̅)2 = ∑ 𝑦𝑖 2 − (∑ 𝑦𝑖 )
𝑛
𝑖=1 𝑖=1 𝑖=1
1
𝑺𝒚𝒚 = 1993.816 − (94.48 )2 = 1993.816 − 892.647 = 𝟏𝟏𝟎𝟏. 𝟏𝟔𝟖𝟔
10
̂𝟏 = 𝟎. 𝟔𝟓𝟓𝟐𝟓𝟐𝟖 … ~𝟎. 𝟔𝟓𝟓 and 𝑺𝒙∗ 𝒚 = 𝟏𝟓𝟒𝟔. 𝟒𝟓𝟗
𝜷
𝑺𝑺𝑬 = 𝑆𝑦𝑦 − 𝛽̂1 𝑆𝑥 ∗ 𝑦 = 1101.1686 − (0.6552528)(1546.459) = 1101.1686 − 1013.259 = 𝟖𝟕. 𝟖𝟒𝟕𝟑
𝑆𝑆𝐸 87.8473
𝑺𝟐 = = = 𝟏𝟎. 𝟗𝟖𝟎𝟗𝟏~𝟏𝟎. 𝟗𝟖
𝑛−2 10 − 2

It has the same SSE and 𝑆 2 with part (a).