Question

According to a flyer by a Prudential Insurance Company representative, the costs of approximate probate fees and taxes for selected net taxable estates are as follows.

Net Taxable Estate ($)	Approximate Probate Fees and Taxes ($)
600,000	30,000
750,000	92,500
1,000,000	203,000
1,500,000	438,000
2,000,000	688,000
2,500,000	1,037,000
3,000,000	1,350,000

a) Calculate the least squares line. Put the equation in the form of: ŷ = a + bx.

(Round your slope to three decimal places and your intercept to the nearest whole number.)

ŷ = __________+__________x

b) Find the estimated total cost for a net taxable estate of $1,500,000. (Use your equation from part (d). Round your answer to the nearest whole number.)

$____________

Find the estimated total cost for a net taxable estate of $2,500,000. (Use your equation from part (d). Round your answer to the nearest whole number.)

$___________

c) Based on these results, what would be the probate fees and taxes for an estate that does not have any assets? (Round your answer to the nearest whole number.)

$___________

d) What is the slope of the least squares (best-fit) line? (Round your answer to three decimal places.) __________________

Answer 1