(a) Assuming that a simple linear regression model is appropriate, obtain the least squares fit relating selling price to taxes paid. What is the estimate of o²? (b) Find the mean selling price given that the taxes paid are x = 7.50. (c) Calculate the fitted value of y corresponding to x = 5.8980. Find the corresponding residual.
(a) Assuming that a simple linear regression model is appropriate, obtain the least squares fit relating selling price to taxes paid. What is the estimate of o²? (b) Find the mean selling price given that the taxes paid are x = 7.50. (c) Calculate the fitted value of y corresponding to x = 5.8980. Find the corresponding residual.
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(a) Assuming that a simple linear regression model is appropriate, obtain the least squares fit relating selling price to taxes paid. What is the estimate of o²?
(b) Find the mean selling price given that the taxes paid are x = 7.50.
(c) Calculate the fitted value of y corresponding to x = 5.8980. Find the corresponding residual.
![11-4. An article in Technometrics by S. C. Narula and J. F.
Wellington [“Prediction, Linear Regression, and a Minimum
Sum of Relative Errors" (Vol. 19, 1977)] presents data on the
selling price and annual taxes for 24 houses. The data are
shown in the following table.
Тахes
Таxes
(Local, School),
Price/1000 County)/1000
Sale
Sale
(Local, School),
Price/1000 County)/1000
25.9
4.9176
30.0
5.0500
29.5
5.0208
36.9
8.2464
27.9
4.5429
41.9
6.6969
25.9
4.5573
40.5
7.7841
29.9
5.0597
43.9
9.0384
29.9
3.8910
37.5
5.9894
30.9
5.8980
37.9
7.5422
28.9
5.6039
44.5
8.7951
35.9
5.8282
37.9
6.0831
31.5
5.3003
38.9
8.3607
31.0
6.2712
36.9
8.1400
30.9
5.9592
45.8
9.1416](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1c1882b-8cae-4227-8953-5cb0ee4f5f20%2Fa998ff21-87ed-4014-bb51-8cb8135e0c62%2Fpq4pfnk_processed.png&w=3840&q=75)
Transcribed Image Text:11-4. An article in Technometrics by S. C. Narula and J. F.
Wellington [“Prediction, Linear Regression, and a Minimum
Sum of Relative Errors" (Vol. 19, 1977)] presents data on the
selling price and annual taxes for 24 houses. The data are
shown in the following table.
Тахes
Таxes
(Local, School),
Price/1000 County)/1000
Sale
Sale
(Local, School),
Price/1000 County)/1000
25.9
4.9176
30.0
5.0500
29.5
5.0208
36.9
8.2464
27.9
4.5429
41.9
6.6969
25.9
4.5573
40.5
7.7841
29.9
5.0597
43.9
9.0384
29.9
3.8910
37.5
5.9894
30.9
5.8980
37.9
7.5422
28.9
5.6039
44.5
8.7951
35.9
5.8282
37.9
6.0831
31.5
5.3003
38.9
8.3607
31.0
6.2712
36.9
8.1400
30.9
5.9592
45.8
9.1416
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