An insurance company wishes to examine the relationship between income (in $,000) and the amount of life insurance (in $,000) held by families. The company drew a simple random sample of families and obtained the following results:
Family(Income)(Amount of life insurance)
A 50 120
B 80 200
C 100 220
D 80 160
E 80 180
F 120 270
G 70 150
H 100 240
I 60 160
J 90 210
What is the least squares estimates of the slope?
What is the least squares estimate of the Y intercept?
What is the prediction for the amount of life insurance for a family whose income is $85,000?
What would be the residual (error) term for a family income of $90,000?
1 answer