Monday

December 22, 2014

December 22, 2014

Posted by **hani** on Monday, May 25, 2009 at 1:17pm.

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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?

- statistics -
**drwls**, Monday, May 25, 2009 at 2:19pmThe 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

- statistics (correction) -
**drwls**, Monday, May 25, 2009 at 2:26pmI 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

- statistics -
**hani**, Monday, May 25, 2009 at 5:11pmthank 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 !

- statistics -
**drwls**, Monday, May 25, 2009 at 9:50pmYou 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.

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