Question 1 An article in Technometrics by S. C. Narula and J. F.Wellington (“Prediction, Linear Regression, and a Minimum Sum ofRelative Errors,†Vol. 19, 1977) presents data on the selling price(y) and annual taxes (x) for 24 houses. The taxesinclude local, school and county taxes. The data are shown in thefollowing table. | Sale Price/1000 | Taxes/1000 |
|---|
| 25.9 | 4.9176 | | 29.5 | 5.0208 | | 27.9 | 4.5429 | | 25.9 | 4.5573 | | 29.9 | 5.0597 | | 29.9 | 3.8910 | | 30.9 | 5.8980 | | 28.9 | 5.6039 | | 35.9 | 5.8282 | | 31.5 | 5.3003 | | 31.0 | 6.2712 | | 30.9 | 5.9592 | | 30.0 | 5.0500 | | 36.9 | 8.2464 | | 41.9 | 6.6969 | | 40.5 | 7.7841 | | 43.9 | 9.0384 | | 37.5 | 5.9894 | | 37.9 | 7.5422 | | 44.5 | 8.7951 | | 37.9 | 6.0831 | | 38.9 | 8.3607 | | 36.9 | 8.1400 | | 45.8 | 9.1416 |
(a) Calculate the least squares estimates of the slope andintercept. β^1=Enter your answer; beta1 (Round your answer to 3 decimalplaces.) β^0=Enter your answer; beta0 (Round your answer to 2 decimalplaces.) (b) Find the mean selling price given that the taxes paid arex = 5.3. Enter your answer in accordance to the item b) of the questionstatement (Round your answer to 2 decimal places.) (c) Calculate the fitted value of y corresponding tox = 5.0208 (observation #2). Find the correspondingresidual. y^=Enter your answer; the fitted value of y (Round your answerto 2 decimal places.) y−y^=Enter your answer; the corresponding residual (Round youranswer to 2 decimal places.) Statistical Tables and Charts | 
