Question 254807
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, 80, 120
B, 100, 200
C, 110, 220
D, 90, 160
E, 80, 180
F, 140, 270
G, 110, 150
H, 100, 240
I, 80, 160
J, 100, 210
----
I ran a Linear Regression program on a TI calculator
to get the following answers:
---- 

QUESTION a
What is the least squares estimate of the slope?
Ans: 1. 8155 
QUESTION b
What is the least squares estimate of the Y intercept?
Ans: 11.2621 
QUESTION c
What is the prediction for the amount of life insurance for a family whose income is $85,000? 
f(85) = 165.58
QUESTION d
What would be the residual (error) term for a family income of $90,000?
Ans: Observed - Estimated
160-174.66 = -14.66
=============================
Cheers,
Stan H.