Math Problem Statement

Problem 3-26 (Algo) The following data were collected during a study of consumer buying patterns:

Observation x y 1 18 69 2 26 81 3 41 85 4 35 77 5 56 95 6 46 93 7 33 86 8 19 81 9 14 75 10 10 76 11 25 83 12 21 86 13 29 90 Click here for the Excel Data File

Obtain a linear regression line for the data.

Note: Round your intermediate calculations and final answers to 3 decimal places.

What percentage of the variation is explained by the regression line?

Note: Do not round intermediate calculations. Round your answer to the nearest whole percent.

Use the equation determined in part b to predict the expected value of y for x = 44.

Note: Round your intermediate calculations and final answers to 3 decimal places.

Solution

The linear regression equation for the data is:

y=70.568+0.428xy = 70.568 + 0.428x

a) The percentage of the variation explained by the regression line is:

R2×100=57.83%58%R^2 \times 100 = 57.83\% \approx 58\%

b) Using the equation to predict yy when x=44x = 44:

y=70.568+0.428(44)=89.397y = 70.568 + 0.428(44) = 89.397

Would you like more details or have any questions?

Here are 5 related questions to expand on this:

  1. How is the slope of a regression line interpreted?
  2. What does the R-squared value represent in a linear regression model?
  3. How would you calculate the residuals for this regression model?
  4. How can outliers affect the regression line?
  5. What is the significance of the intercept in a regression model?

Tip: Always check the assumptions of linear regression (linearity, homoscedasticity, normality of residuals, etc.) before relying on the model for predictions.

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Math Problem Analysis

Mathematical Concepts

Linear Regression
Statistics

Formulas

y = mx + b (Linear Regression Formula)
R-squared formula

Theorems

Least Squares Method

Suitable Grade Level

College/University Level (Statistics, Business Analytics)