Predict the 2007 cost of living index of city 2 and find its residual. The predicted...

Predict the 2007 cost of living index of city 2 and find its residual. The predicted 2007 cost of living index of city 2 is nothing . (Round to one decimal place as needed.)

City	Index_2006	Index_2007
1	117.3	125.7
2	121.8	122
3	102.3	104.3
4	93	95.8
5	111.7	119.6
6	112.9	124.8
7	95.3	97.3
8	109.9	111.5
9	100.5	101.8
10	95.8	103.6
11	121.2	121.4
12	119.3	124.6
13	105.9	118.3
14	111.2	119.4
15	111.3	115.8

Expert Solution

Solution: We can use the excel regression data analysis tool to find the least-squares regression equation. The excel output is given below:

SUMMARY OUTPUT

Regression Statistics
Multiple R	0.92034249
R Square	0.8470303
Adjusted R Square	0.8352634
Standard Error	4.247539479
Observations	15

ANOVA
	df	SS	MS	F	Significance F
Regression	1	1298.708642	1298.708642	71.98415025	0.0000
Residual	13	234.5406911	18.04159162
Total	14	1533.249333

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	3.6052	13.0256	0.2768	0.7863	-24.5350	31.7453
Index_2006	1.0138	0.1195	8.4843	0.0000	0.7556	1.2719

Therefore, the regression equation is:

Therefore, the predicted 2007 cost of living index of city 2 is

Therefore, the residual is:

orchestra answered 2 years ago

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