PROBLEM SET ON SIMPLE LINEAR REGRESSION
A research assistant (RA) was asked to formulate a regression model to describe the relationship
between income and physical movement (measured by the number of steps walked in a day) among a
group of professionals in a high end subdivision in the City of Paranaque within the age bracket 25 to 35
years old. The following data was obtained:
Participant No. Ave. Monthly Ave. Number of Steps
Income in a day
1 52 2500
2 30 2800
3 45 2500
4 22 2600
5 51 2400
6 78 2200
7 32 2400
8 20 2800
9 50 2300
10 41 2300
11 18 2250
12 31 2500
13 22 2400
14 32 2200
15 19 2500
16 33 2100
17 37 2200
18 39 2000
19 48 2250
20 55 2200
The model formulated is as follows
Income is the independent variable; average number of steps in a day is the dependent variable
Complete the tables below and answer the succeeding questions
X Yi – Y bar Xi – X bar (Xi – Xbar )2 (Yi –Y bar) x
Participant Y Ave monthly (Xi–X bar)
No. Ave Steps income (in
walked thousands
daily of pesos)
1 2500 52 130 14.25 203.06 1,852.5
2 2800 30 430 -7.75 -60.06 -3,332.5
3 2500 45 130 7.25 60.06 942.5
4 2600 22 230 -15.75 248.06 -3,622.5
5 2400 51 30 13.25 175.56 397.5
6 2200 78 -170 40.25 1,620,06 -6,842.5
7 2400 32 30 -5.75 33.06 -172.5
8 2800 20 430 -17.75 315.06 -7,632.5
9 2300 50 -70 12.25 150.06 -857.5
10 2300 41 -70 3.25 10.5 -227.5
11 2250 18 -120 -19.75 390.06 2,370
12 2500 31 130 -6.75 45.56 -877.5
13 2400 22 30 -15.75 248.06 -472
14 2200 32 -170 -5.75 33.06 977.5
15 2500 19 130 -18.75 351.56 -2,437.5
16 2100 33 -270 -4.75 22.56 1,282.5
17 2200 37 -170 -0.75 0.56 127.5
18 2000 39 -370 1.25 1.56 -462.5
19 2250 48 -120 10.25 105.06 -1,230
20 2200 55 -170 17.25 297.56 -2,932.5
N=20 2370 37.75 0 0 2630.96 -23,149.5
Answer the questions that follow
1. How should the regression equation for model 1 be written?
a. Y = Bo + Ixi + ui (I = ave. monthly income)
b. Y = Bo + Sxi + ui (S = ave. no. of steps/day)
c. Y = Bo + Ixi + Sxi + ui (I = income, S = ave. no. of steps/day)
d. Y = Bo + Sxi + Ixi + ui (I = income, S = ave. no. of steps/day)
2. What is the mean value of the monthly income of the participants?
a. 2.370
b. 37.750
c. 47.400
d. 75.5000
3. What is the mean value of the number of steps of the participants?
a. 2370
b. 37750
c. 47400
d. 755000
4. What is (Yi – Y bar) for participant 12?
a. 130
b. 30
c. 170
d. – 100
5. What is (Xi – X bar) for participant 15?
a. -15.750
b. -18.750
c. -6.750
d. 1.250
6. What is (Xi – Xbar )2 for respondent 10?
a. 15.0062500
b. 17.5562500
c. 22.562500
d. 10.562500
7. What is ((Yi –Y bar) x (Xi–X bar) for respondent 20?
a. -1230
b. 127.5
c. -4625
d. -2932.5
8. What is (Yi – Y bar) for participant 5?
a. 130
b. 230
c. 430
d. 30
9. What is (Xi – X bar) for participant 9?
a. 12.250
b. 3.250
c. -17.750
d. -19.750
10. What is (Xi – Xbar )2 for respondent 18?
a. 39.0062500
b. 15.0062500
c. 1.562500
d. 45.562500
11. What is ((Yi –Y bar) x (Xi–X bar) for respondent 14?
a. 977.500
b. -462.500
c. -293.2500
d. -47.2500
12. What is the total of Yi – Ybar column?
a. 47400
b. 755000
c. 0
d. 100
13. What is the total of Xi – Xbar column?
a. 47400
b. 755000
c. 0
d. 100
14. What is the total of the (Xi–X bar)2 column?
a. -2315
b. 4363.750000
c. 755000
d. 0
15. What is the total of the (Yi –Y bar) x (Xi–X bar) column?
a. -23150
b. 43637
c. 755000
d. 0
16. What is the value of B1?
a. 0
b. 2570.266
c. -5.30507
d. 47400
17. What is the value of Bo?
a. 0
b. 2570.266
c. 202636.4
d. 47400
18. How is the “estimated” regression equation written?
a. Y = 2570.27 - 5.30507 + ui
b. Y = 202636.4 + 5.30507 + ui
c. Y = 47400 + 2570.266 + ui
d. Y = 2570.27 + 5.30507 + ui
e. Y = 47400 - 2570.266 + ui
19. How is B1 interpreted?
a. For every 1000 pesos increase in monthly income the ave. number of steps walked by each
individual per day decreases by 2570, ceteris paribus
b. For every 1000 pesos increase in monthly income the ave. number of steps walked by each
individual per day increases by 2570, ceteris paribus
c. For every 1000 pesos increase in monthly income the ave. number of steps walked by each
individual per day increases by 5 (rounded of), ceteris paribus
d. For every 1000 peso increase in monthly income the ave. number of steps walked by each
individual per day decreases by 5 (rounded of), ceteris paribus
20. How is Bo interpreted? (note: some figures are rounded off)
a. When monthly income is 0, the number steps taken per day is 47400
b. When monthly income is 0, the number steps taken per day is 2570
c. When monthly income is 0, the number steps taken per day is 202636
d. When monthly income is 0, the number steps taken per day is 5
