Hi all i have this assignment,please help me :D
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1.The following table presents the monthly consumption (C) and income (I) of 5 families, in Jordanian Dinars:
(C) (I)
290 400
210 230
200 200
150 220
250 450
A) Plot the data;
B) Write the estimated simple regression model;
C) What is the estimated consumption when the income is 500?
The plotting and regression-fitting tool at this site should help you:
http://science.kennesaw.edu/~plaval/applets/LRegression.html
Using this site and entering the C and I values in a table provided, I get the best linear fit to be
C = 0.368 I + 131.524
For I = 500, this results in C = 315.5
I made a mistake reading the results of that Java applet that was referenced.
The constant value in that regression fit should be
b = 109.59107,
which makes the best fit
C = 0.368 I + 109.59
Fot I = 500, C = 293.6
thank you so much,but i need the solution i know its can be done on that site but the teacher wants to see the solution in details !
You will find the formulas at
http://people.hofstra.edu/Stefan_Waner/realworld/calctopic1/regression.html
The plotting of the graph is also something you will have to do yourself.
A) Plotting the data:
To plot the data, you will need a graph with the x-axis representing income (I) and the y-axis representing consumption (C). You can use any graphing tool or software of your choice.
Marks the points on the graph according to the given data:
Point 1: (I = 400, C = 290)
Point 2: (I = 230, C = 210)
Point 3: (I = 200, C = 200)
Point 4: (I = 220, C = 150)
Point 5: (I = 450, C = 250)
Connect these points on the graph with a straight line or line of best fit.
B) Writing the estimated simple regression model:
To estimate the simple regression model, you need to find the equation for the line of best fit. The simple regression model has the form: C = a + bI, where C is the consumption and I is the income.
You can use linear regression analysis to find the values of a and b. This analysis will give you the equation of the line of best fit.
C) Finding the estimated consumption when the income is 500:
To find the estimated consumption when the income is 500, you can substitute the value of I = 500 into the equation obtained in step B and solve for C.
Let's assume the equation obtained in step B is: C = 50 + 0.5I
Substituting I = 500 into the equation: C = 50 + 0.5(500) = 300
Therefore, the estimated consumption when the income is 500 is 300.