7. Property taxes for an Ontario resident over the years are listed. Year: 2007 2008 2009...

7. Property taxes for an Ontario resident over the years are listed.

Year: 2007 2008 2009 2010 2011 2012

Taxes: $2,900 $3,000 $3,150 $3,300 $3,400 $3,600

a) Draw/sketch a scatter diagram.

b) Calculate the least squares equation.

c) Predict the property tax for the year 2020.

Expert Solution

	Year (X)	Taxes (Y)	X * Y	X2	Y2
	2007	2900	5820300	4028049	8410000
	2008	3000	6024000	4032064	9000000
	2009	3150	6328350	4036081	9922500
	2010	3300	6633000	4040100	10890000
	2011	3400	6837400	4044121	11560000
	2012	3600	7243200	4048144	12960000
Total	12057	19350	38886250	24228559	62742500

Part a)

Part b)

Equation of regression line is Ŷ = a + bX

b = 138.571
a =( Σ Y - ( b * Σ X) ) / n
a =( 19350 - ( 138.5714 * 12057 ) ) / 6
a = -275234.286
Equation of regression line becomes Ŷ = -275234.2857 + 138.5714 X

Part c)

When X = 2020
Ŷ = -275234.286 + 138.571 X
Ŷ = -275234.286 + ( 138.571 * 2020 )
Ŷ = 4679.13

orchestra answered 2 years ago

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