Question

People have been using Cameras for private daily use since the 1880s and the first Kodak camera cost a lot of money in those days. Today we wish to see if the size of the camera can be used to predict the cost. The data is given below:

Y = cost in dollars X = weight in ounces y {300, 250, 350, 400, 150, 180, 140, 300, 300, 200} X {6, 5, 7, 5, 6, 6, 4, 6, 6, 5} The following information is available for you to use in the analysis of this topic. n=10 x̄= 5.6 ȳ= 257 SSxy = 248 SSxx = 6.4 SSyy = 69010

Find the least squares prediction equation. a)Ŷ = -300 + 100X1 b)Ŷ = 0 + 50X1 c)Ŷ = 40 + 38.75X1 d)none of these

Answer 1

Correct option:

(c)

EXPLANATION:

The least squares prediction equation is given by:

                                  (1)

where

                                  (2)

and

                              (3)

Given:

= 5.6                                      (4)

= 257                                     (5)

    SS_XX = 6.4                            (6)

SS_XY = 248                           (7)

Substituting (6) & (7), equation (1) becomes:

                   (8)

Substituting (4), (5) & (8) in equation (3), we get:

         (9)

Substituting (8) & (9) in equation (1), we get:

So,

Correct option:

(c)