SOLUTION: The following information refers to the next four questions:
An insurance company wishes to examine the relationship between income (in $,000) and the amount of life insurance (in
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Question 874851: The following information refers to the next four questions:
An insurance company wishes to examine the relationship between income (in $,000) and the amount of life insurance (in $,000) held by families. The company drew a simple random sample of families and obtained the following results:
Family Income Amount of life insurance
A 50 120
B 80 200
C 100 220
D 80 160
E 80 180
F 120 270
G 70 150
H 100 240
I 60 160
J 90 210
QUESTION 21
What is the least squares estimate of the slope?
Answer should be to four decimal places e.g. 1.2345.
Please do NOT include any units in your answer.
QUESTION 22
What is the least squares estimate of the Y intercept?
Answer should be to four decimal places e.g. 1.2345.
Please do NOT include any units in your answer.
QUESTION 23
What is the prediction for the amount of life insurance for a family whose income is $85,000?
Answer should be to four decimal places and be consistent with your original data set, e.g. if your answer was $75,410.90, you would enter 75.4109 as your answer.
Please do NOT include any units in your answer.
QUESTION 24
What would be the residual (error) term for a family income of $90,000?
Answer should be to four decimal places and be consistent with your original data set e.g. if your answer was $940.90, you would enter 0.9409. If your answer was $9,400.90, you would enter 9.4009 etc..
Please do NOT include any units in your answer.
Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!
Used Excel scatter plot format
.
What is the least squares estimate of the slope? 2.1181
What is the least squares estimate of the Y intercept? 15.197
What is the prediction for the amount of life insurance for a family whose income is $85,000?
y(85) = 2.1181(85) + 15.197
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