Question

For 10 observations on price x and supply y the following data were obtained (in approximate Units)
Ex = 130, Cy = 220 , Xx2 = 2288,% y2 = 5506, and Xx y = 3467 ,. Obtain the two lines of regression and estimate the supply when the price is 16 units.

Answer 1

Step-by-step explanation:

Line of regression of y on x is : y−

y

=b

yx

(x−

x

) where

y

and

x

are mean values.

∴

y

=22,

x

=13 as n=10

Also, b

yx

=r

σ

x

σ

y

∴r=

[n∑x

2

−(∑x)

2

][n∑y

2

−(∑y)

2

]

n∑−(∑x)(∑y)

=0.962

σ

y

=8.2 and σ

x

=7.73

∴b

yx

=1.02

∴y=1.02x+8.74 is the required line of regression.