1.

A random sample of 10 families had the following income and food expenditure (£ per week)
Families A B C D E F G H I J
Family income 20 30 33 40 15 13 26 38 35 43
Family expenditure 7 9 8 11 5 4 8 10 9 10

a) Estimate the regression line of food expenditure on income.

b) Predict the expenditure of a family with an income of 50.

2. The following results have been obtained from a sample of 11 observations on the values of
sales (Y) of a firm and the corresponding prices (X).

X́ =519.8 Ý =217.82 ∑ X 2i =3,134,543 ∑ X i Y i=1,296,836

a) Estimate the regression line of sales on price.

b) Forecast the value of sales when price is ₦12.