Consider the following relationship between number of pieces of candy eaten per
ID: 3389140 • Letter: C
Question
Consider the following relationship between number of pieces of candy
eaten per day and pounds gained per month:
Person Candy Pounds
1 3 6
2 5 7
3 1 2
4 8 10
5 3 5
6 3 6
7 5 7
8 1 2
9 8 10
10 3 5
a. Estimate the OLS regression for pounds (y) vs. candy (x). (Hint: the slopes and
intercepts should be similar to that on a question on the first exam.)
b. Once this is done perform the Breusch-Pagan test for heteroskedasticity to see
if the variance in the error term may depend on the number of pieces of candy
eaten.
Explanation / Answer
Consider the following relationship between number of pieces of candy eaten per day and pounds gained per month:
Here dependent variable (Y) = pounds
and independent variable (X) = candy
By using MINITAB:
steps : STAT --> Regression --> Regression --> response : pound --> predictor : candy --> Result : second option --> ok
The Regression output is,
Regression Analysis: pounds(y) versus candy(x)
The regression equation is
pounds(y) = 1.71 + 1.07 candy(x)
slope = 1.07
intercept = 1.71
Predictor Coef SE Coef T P
Constant 1.7143 0.4232 4.05 0.004
candy(x) 1.07143 0.09105 11.77 0.000
S = 0.681385 R-Sq = 94.5% R-Sq(adj) = 93.9%
Analysis of Variance
Source DF SS MS F P
Regression 1 64.286 64.286 138.46 0.000
Residual Error 8 3.714 0.464
Total 9 68.000