Linear Regression | Math@TutorVista.com
Question: 10 observations on price X and supply "Y" the following data was obtained [sum] X = 130, [sum] Y = 220, [sum] X2 = 2288, [sum] 2 = 5506,

**[sum] XY = 3467** Find the line of regression of Y on X.

Solution:

The line of regression of Y on X

Y = a + bX

The norm equations are

[sum] Y = a + b [sum] X

[sum] XY =a [sum] X + b [sum] X2

10a + 130b = 220 ...........(i)

130a + 2288b = 3467 ..................(ii)

Solving the equations (i) and (ii), we get a = 8.8 and b =1.01

=> Y = 8.8 + (1.01)X