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Pleasse answer C & D with out using Matlab or a graphic calculator. please ident

ID: 3362270 • Letter: P

Question

Pleasse answer C & D with out using Matlab or a graphic calculator. please identify any formulas used

8. The following information was obtained from a random sample of sixteen professional engineers. The variable X represents the years of job-related experience, while the variable Y represents the annual remuneration in thousands of dollars. It X, = 384.0 y2 = 10,716.0 =2,496.0; , 391,536.0 .XX = 61.254.0 (a) Compute (i) the covariance of X and Y and (ii) the coefficient of correlation r of X and Y (b) Find the 95% confidence limits of the true coefficient of correlation (c) It is believed that Y and X are related by an equation of the form Y-Bo + + Write down the normal equations of the least squares line and then compute the estimates bo and bl of 0 and 1 respectively. (d) Compute the error sum of squares and use this information to find the 95% confidence limits of 1.

Explanation / Answer

C)

Y = nB0 + B1 x

XY = B0x + B1 x2

Calculations

2496 = 16*B0 + B1 * 384

61.254 = B0 * 384 + B1 * 10716

By solving these equations

we get B0 = 1113.48

B1 = -39.8952

Now required regression equation

Y = 1113.48 - 39.8952*X

d) Error sum of squares

  [Y - Ybar]2

=> Y2 + n*Ybar2 - 2 Y*Ybar

=> 391536 + 16*(2496/16)2 - 2*391536/16

=> 731970