LAMBOJO, ANDREA RHEI M. SEAT NO.

: 307
GED102-B11
MODULE 9 EXERCISE 2.1
1. A study was conducted to determine the relationship between weekly
advertising cost and sales in pesos

Costs (x) Sales (y)

1,000 20,000
1,500 23,750
2,000 24,500
2,500 26,250
2,500 25,500
3,000 28,000

a. Find the regression line to predict the weekly sales from advertising
costs.
b. Estimate the weekly sales when advertising cost is P2,300.
Solution
x y xy x2 y2
1 1,000 20,000 20,000,000 1,000,000 400,000,000
2 1,500 23,750 35,625,000 2,250,000 564,062,500
3 2,000 24,500 49,000,000 4,000,000 600,250,000
4 2,500 26,250 65,625,000 6,250,000 689,062,500
5 2,500 25,500 63,750,000 6,250,000 650,250,000
6 3,000 28,000 84,000,000 9,000,000 784,000,000
Ʃ 12,500 148,000 318,000,000 28,750,000 3,687,625,000

Slope
n ( Ʃxy ) −(Ʃx)(Ʃy)
m=
¿¿
( 6 ) ( 318,000,000 )−(12,500)(148,000)
m=
(6 ( 28,750,000 )−( 12,500 )2 )
m=3.5692
Intercept
b= y−m x
¿ 24,666.67−(3.5692)(2,083.33)
b=17,230.85
y=3.5692 x +17,230.85
y=3.5692 ( 2,300 ) +17,230.85
y=25,440.01 are the estimated weekly sales when the advertising cost is
P2,300

2. Find the equation of the least -squares line and the correlation coefficient
for the following set of points.
(2,6), (2,6.5), (3,7), (4,9), (5,8), (6, 10)
Solution
x y xy x2 y2
1 2 6 12 4 36
2 2 6.5 13 4 42.25
3 3 7 21 9 49
4 4 9 36 16 81
5 5 8 40 25 64
6 6 10 60 36 100
Ʃ 22 46.5 182 94 372.25

Correlation coefficient
SS xy
r=
√ SS xx SS yy
[ ( 6 ) ( 182 )−( 22 ) ( 46.5 ) ]
r=
√ [ ( 6 )( 94 )−( 22 ) ] [( 6 )( 372.25 )−( 46.5 ) ]
2 2

r =0.9139
 Slope
n ( Ʃxy ) −(Ʃx)(Ʃy)
m=
¿¿
( 6 ) ( 182 )−(22)(46.5)
m=
(6 ( 94 )− ( 22 )2)
m=0.8625
Intercept
b= y−m x
¿ 7.75−(0.8625)(3.67)
b=4.5846
y=0.8625 x + 4.5846
3. Find the equation of the least-squares line and the correlation coefficient
for the following set of points.

(49, 53), (36, 41), (64, 38), (90, 79), (80, 91), (60, 48), (60, 71), (40, 47)

x y xy x2 y2
1 49 53 2597 2401 2809
2 36 41 1476 1296 1681
3 64 38 2432 4096 1444
4 90 79 7110 8100 6241
5 80 91 7280 6400 8281
6 60 48 2880 3600 2304
7 60 71 4260 3600 5041
8 40 47 1880 1600 2209
Ʃ 479 468 29,915 31,093 30,010

Correlation coefficient
( 8 ) ( 29,915 )−(479)(468)
r=
√ [ ( 8 )( 31,093 ) −( 479 ) ] [ ( 8 )( 30,010 ) −( 468 ) ]
2 2

r =0.7514
Slope
( 8 ) ( 29,915 )−(479)(468)
m=
(8 ( 31,093 )−( 479 )2)
 m=0.7847
Intercept
b= y−m x
¿ 58.5−(0.7847)(59.875)
b=11.51318

y=0.7847 x+11.51318

4. The following table shows the number of subscribers of a cable company

in recent years.
Year 2013 2014 2015 2016 2017
Subscribers 26 38 45 115 135
in
thousands
a. Find the correlation coefficient for the recorded data of subscriptions.
b. Predict the number of subscribers for the year 2018.
Solution
x y xy x2 y2
1 2013 26 52,338 4,052,169 676
2 2014 38 76,532 4,056,196 1444
3 2015 45 90,675 4,060,225 2025
4 2016 115 231,840 4,064,256 13,225
5 2017 135 272,295 4,068,289 18,225
Ʃ 10,075 359 723,680 20,301,135 35,595

Correlation coefficient
( 5 ) ( 723,680 )−(10,075)(359)
r=
√ [ ( 5 ) ( 20,301,135 )− (10,075 ) ] [ (5 )( 35,395 )−( 359 ) ]
2 2

r =0 .9414

Slope
( 5 ) ( 723,680 )−(10,075)(359)
m= 2
(5 ( 20,301,135 )−( 10,075 ) )
m=29.5
Intercept
b= y−m x
¿ 71.8−29.5(2015)
 b=−59,370.7

y=29.5 x−59,370.7
y=29.5 ( 2018 )−59,370.7
=160.3 is the number of subscribers for the year 2018.

5. The grades of 9 senior high school students in a statistics course on a

midterm period (x) and on the final examination (y) are as follows:
x 80 94 96 98 67 77 60 71 72
y 85 100 100 68 82 66 78 54 68

a. Estimate the linear regression line.

b. Estimate the final examination grade of a student who received a grade of
85 during the midterm period.

x y xy x2 y2
1 80 85 6800 6400 7225
2 94 100 9400 8836 10,000
3 96 100 9600 9216 10,000
4 98 68 6664 9604 4624
5 67 82 5494 4489 6724
6 77 66 5082 5929 4356
7 60 78 4680 3600 6084
8 71 54 3834 5041 2916
9 72 68 4896 5184 4624
Ʃ 715 701 56,450 58,299 56,553

Correlation coefficient
( 5 ) ( 723,680 )−(10,075)(359)
r=
√ [ ( 5 ) ( 20,301,135 )− (10,075 ) ] [ (5 )( 35,395 )−( 359 ) ]
2 2

r =0 .444282
Slope
( 9 ) ( 56,450 )−(715)(701)
m= 2
(9 (58,299 )−( 715 ) )
m=0.507575
Intercept
b= y−m x
¿ 77.89−(0.507575)(79.44)
 b=37.5682
a. y=0.5076 x+¿ 37.5682

b. y=0.5076 ( 85 ) +37.5682
y=80.71 is the final examination grade of a student who received a grade
of 85 during the midterm period.