Question

The following table presents the average price in dollars for a dozen eggs and a gallon of milk for each month in a recent year.

Dozen Eggs	Gallon of Milk
1.94	3.58
1.80	3.52
1.77	3.50
1.83	3.47
1.69	3.43
1.67	3.40
1,65	3.43
1.88	3.47
1.89	3.47
1.96	3.52
1.96	3.54
2.01	3.58

If a linear regression model were fit, what is the value of the slope and the value of the y-intercept? Please round to 3 decimal places as necessary. Treat the price of a gallon of milk as the response variable.

Answer 1

x: Dozen Eggs: Independent variable

y: Gallon of Milk: Dependent variable

The regression equation is y = a + b*x

Here a is intercept and b is a slope.

	Dozen Eggs (x)	Gallon of Milk (y)	xy	x^2
	1.94	3.58	6.9452	3.7636
	1.8	3.52	6.336	3.24
	1.77	3.5	6.195	3.1329
	1.83	3.47	6.3501	3.3489
	1.69	3.43	5.7967	2.8561
	1.67	3.4	5.678	2.7889
	1.65	3.43	5.6595	2.7225
	1.88	3.47	6.5236	3.5344
	1.89	3.47	6.5583	3.5721
	1.96	3.52	6.8992	3.8416
	1.96	3.54	6.9384	3.8416
	2.01	3.58	7.1958	4.0401
Total	22.05	41.91	77.0758	40.6827

= 77.0758

= 40.6827

= 1.8375

= 3.4925

The linear regression model is = 2.759 + 0.399*x