Linear Regression

Practice 1
Given are five observations for two variables, x and y:
Y 3 7 5 11 14
X 1 2 3 4 5

Regression Equation:
Y i=B0 + B1 X i +ε i

Estimated Regression Equation:

^y i=b 0 +b1 x 1

a. Develop the estimated regression equation by computing the values of b0 and b1.
b. Use the estimated regression equation to predict the value of y when x = 4.
c. Find the Coefficient of Determination.
d. Find the correlation between x and y.
Practice 2
Given the following:
Quarterly Sales ($1000s) Student Population (1000s)
58 2
105 6
88 8
118 8
117 12
137 16
157 20
169 20
149 22
202 26

a. Develop the estimated regression equation by computing the values of b0 and

b1.
b. Find the Coefficient of Determination.
c. Find the correlation between x and y.