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  • Application of Ols

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    TASH TASHNA
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    The document discusses using ordinary least squares (OLS) regression to analyze the relationship between a used car's age and advertised purchase price. It provides age and price data for 6 cars and asks to: 1) Draw a scatter plot to visualize the relationship; 2) Calculate the OLS regression equation; 3) Interpret the slope and y-intercept.

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    regression

    Original Title

    application of ols

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    The document discusses using ordinary least squares (OLS) regression to analyze the relationship between a used car's age and advertised purchase price. It provides age and price data for 6 cars and asks to: 1) Draw a scatter plot to visualize the relationship; 2) Calculate the OLS regression equation; 3) Interpret the slope and y-intercept.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    15 views2 pages

    Application of Ols

    Uploaded by

    TASH TASHNA
    The document discusses using ordinary least squares (OLS) regression to analyze the relationship between a used car's age and advertised purchase price. It provides age and price data for 6 cars and asks to: 1) Draw a scatter plot to visualize the relationship; 2) Calculate the OLS regression equation; 3) Interpret the slope and y-intercept.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Application of OLS

    A car buyer is interested in purchasing a second hand car and wants


    to analyze the relationship between the car’s age and the advertised
    purchase price. He gathers the following information:

    X (Age in years) 2 4 6 8 10 12
    Y (Advertised 840 620 510 400 325 190
    price in
    thousand)

    1. Draw a scatter diagram to represent the above information and comment


    on how this can be interpreted.
    2.Find the least square regression equation of the regression line of Y on X.
    3. Interpret the slope coefficient and the y intercept obtained.

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