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The director of an alumni association for a university wants to look at the relationship between the number of years since graduation and the amount of monetary contribution an alumnus makes to the university. He collects data on 50 alumni who have made contributions this year. The number of years since graduation has a mean of 5.5, and the amount of contribution has a mean of $132. Based on the least squares regression line fitted to the data, it is found that for every year increase since graduation, the contribution is expected to drop by $45.

Predict the amount of contribution made by an alumnus who graduated 5 years ago.

  • statistics -

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  • statistics -


    b0=132-(-45x5.5)= 379.5


    y-hat=379.5-45x5 = 154.5

    contribution amount= $154.5

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