Math Problem Statement
The annual profits for a company are given in the following table, where x represents the number of years since 2002, and y represents the profit in thousands of dollars. Write the linear regression equation that represents this set of data, rounding all coefficients to the nearest hundredth. Using this equation, find the projected profit (in thousands of dollars) for 2010, rounded to the nearest thousand dollars.
Years since 2002 (x)Profits (y) (in thousands of dollars)
00
135135
11
160160
22
157157
33
192192
44
192192
55
227
Solution
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Math Problem Analysis
Mathematical Concepts
Linear Regression
Algebra
Statistics
Formulas
y = mx + b (Linear Regression Equation)
Slope (m) = (Σ(xy) - n*x̄*ȳ) / Σ(x^2 - n*x̄^2)
Intercept (b) = ȳ - mx̄
Theorems
Least Squares Method
Suitable Grade Level
Grades 10-12
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