Unit Price Qd

Symbol $ Kgs
n X Y
1970 40 10
1971 63 20
1972 52 30
1973 17 40
1974 55 50
1975 55 60
1976 50 75
1977 90 80
1978 91 90
1979 110 100

10 623 555

For B2 (its for sample, assume hat)

we need:
If use Capital X & Y
 n
Sum-X.Y
Sum-X
Sum-Y
Sum-X2
Step-0 (Sum-X)2

Formula:

Calculation

Step-1

Step-2
Step-3

Step-4
Step-5

B2

For B1 (its for sample, assume hat)

We Need:
Calculated
Y-bar
B2
X-bar

Formula:
 Calculation:

B1

For Error Term

Formula
Error =

Or
Error =

Calculation

1 Un-hat =
2 Un-hat =
3 Un-hat =
4 Un-hat =
5 Un-hat =
6 Un-hat =
7 Un-hat =
8 Un-hat =
9 Un-hat =
10 Un-hat =
11
12
13
14
15
16
17
18
19
20
21
22
23
 24
25
26

Standard Error

Data
Sum-X 2

n
Sum-xi2
(Error)2
n-k

Formula

Calculation

Step -6
Step-7

Var (B1-hat)

Formula
 Se(B1-hat)

Se(B1-hat)

Formula

Var (B2)

Se (B2)

F Test
Ho : Model is not good fit
H1 : Model is good fit

Fc By Formula

R2 =

Step-17 N2
Step-18 N1
 Fc [R2/(1-R2)]x[N2/N1]

Fc By ANOVA Calulation

Sourcse SS
ESS Sum-(yi-hat)
RSS (Error)2
RTSS Sum-yi2

Sum-(yi-hat)

Sum-(yi-hat)

(Error)2
From Error Term

N2
N1
From Step-17&18

Putting Values:
Sourcse SS
ESS 4483.51532425776
RSS 3938.98467574225
RTSS Sum-yi2

Fc

Fc
 Fa,N1,N2
1%
5%
10%

Table PDF
just click to find Calculated F < F for table, 9.1059 < 11.3 at the significant level of 1
will reject Hypothesis one
Fa,N1,N2

Calculated F > F for table, 9.1059 > 5.32 at the significant level of 5
accept Hypothesis one.

Calculated F > F for table, 9.1059 > 3.46 at the significant level of 1
accept Hypothesis one.
 X-bar 62.3
Y-bar 55.5

X^2 Y^2 XY
1600 100 400.0000
3969 400 1260.0000
2704 900 1560.0000
289 1600 680.0000
3025 2500 2750.0000
3025 3600 3300.0000
2500 5625 3750.0000
8100 6400 7200.0000
8281 8100 8190.0000
12100 10000 11000.0000

45593 39225 40090

If use Capital X & Y

 10
40090
623
555
45593
388129

n (sum-X.Y) 400900

[(Sum-X)(Sum-Y)] 345765
n(Sum-X2) 455930

[(Step-1)-(Step-2)] 55135
[(Step-3)-(Sum-x)2] 67801

Step-4/Step-5 0.813188596038407

Calculated
55.5
0.813188596038407
62.3
(Y-bar)-[B2(X-bar)] 4.83835046680728

Y - (Y-hat)

Y - [4.838350+(0.813188(X))]

10 - [ 4.838350+(0.813188( 40 ))] =
20 - [ 4.838350+(0.813188( 63 ))] =
30 - [ 4.838350+(0.813188( 52 ))] =
40 - [ 4.838350+(0.813188( 17 ))] =
50 - [ 4.838350+(0.813188( 55 ))] =
60 - [ 4.838350+(0.813188( 55 ))] =
75 - [ 4.838350+(0.813188( 50 ))] =
80 - [ 4.838350+(0.813188( 90 ))] =
90 - [ 4.838350+(0.813188( 91 ))] =
100 - [ 4.838350+(0.813188( 110 ))] =
Data
45593
10
6780.1
3938.98467574225
8

n(sum-xi2) 67801
(Error)2 / n-k 492.373084467781

[(sum-X2)/Step-6] x
331.09786050559
(Step-7)
 = Sq root of [var (B1-hat)]

= (331.0978)^(1/2)
= 18.1960946498305

Step-7 / Sum-xi2 0.0726203277927731

(Var (B2))1/2 0.269481590823516

0.53232595123274

N-k 8
K-1 1
9.10593098139007

df MSS
N1 Sum-(yi-hat) / N1
N2 (Error)2 / N2
N-1 MSS of ESS / MSS of RSS

= (B2)2 x (Sum-xi2)
= (0.813188)^2 x (6780.1)
= 4483.51532425776

= 3938.98467574225

= 8
= 1

df MSS
1 4483.51532425776 / 1
8 3938.98467574225 / 8
N-1 MSS of ESS / MSS of RSS

= MSS of ESS / MSS of RSS

( 4483.51532425776 / 1) /
=
( 3938.98467574225 / 8 )
= 9.10593098139007
 1,8
11.3
5.32
3.46

9 < 11.3 at the significant level of 1%, Which means model is not good fit. We
will reject Hypothesis one.

9 > 5.32 at the significant level of 5%, Which means model is good fit. We will
accept Hypothesis one.

9 > 3.46 at the significant level of 10%, Which means model is good fit. We will
accept Hypothesis one.
 xi yi xi^2 yi^2
-22.3000 -45.5000 497.2900 2070.2500
0.7000 -35.5000 0.4900 1260.2500
-10.3000 -25.5000 106.0900 650.2500
-45.3000 -15.5000 2052.0900 240.2500
-7.3000 -5.5000 53.2900 30.2500
-7.3000 4.5000 53.2900 20.2500
-12.3000 19.5000 151.2900 380.2500
27.7000 24.5000 767.2900 600.2500
28.7000 34.5000 823.6900 1190.2500
47.7000 44.5000 2275.2900 1980.2500

0 0 6780.1 8422.5

For B2 (its for sample, assume hat)

we need:
If use Small xi & yi
 Sum-xi.yi 5513.5
Sum-xi2 6780.1

B2 (Sum-xi.yi)/(Sum-xi2 )

Hence;
SRF:

Y-hat 4.838350+(0.813188(X))

Interpret:
slop = 0.813188 Indicate that if one $ Price increse then Qd will decrese by 0.813
Kgs
 Intercept = 4.838350 Indicate that if Price is 0$ then Qd will be 4.838350 Kgs

Error (Error)2
-27.365894308344 748.89217129543
-36.069232017227 1300.9894983125
-17.124157460804 293.23676874242
21.33744340054 455.28649087124
0.4362767510804 0.1903374035332
10.43627675108 108.91587242514
29.502219731272 870.38096907228
1.9746758897361 3.8993448695052
11.161487293698 124.57879860738
5.710903968968 32.614424142775
0.0000 3938.9846757422

Coefficient of correlation

Formula

Data
Sum-xi.yi 5513.5
sum-xi2 6780.1
sum-yi2 8422.5

Calculation

Step-8 (Sum-xi2)(Sum-yi2)
Step-9 (Step-8)1/2

r (Sum-xi.yi) / Step-9

OR,
Formula

Calculation
 Step-10 n(Sum-Y2)
Step-11 (Sum-Y)2
Step-12 (Step-10)-(Step-11)
Step-13 (Step-3)-(Step-0)
Interpretation Step-14 (Step-12).(Step-13)
Step-15 (Step-14)1/2
It indicate that there is negative
relationship b/w Price and Qd, the
strength of relationship b/w Price and
Qd is .729606. [Its range is -1 to 1] r Step-4/Step-15

Coefficient of determination

Formula

Calculation
Interpretatuin Step-16 (Error)2 / (Sum-yi2)

It indicate the variation of 0.532325 in r2 1-(step-16)

the Qd that is predictable from the Direct formula (for verify answare, use direct sq of r)
Price. [Its range is 0 to 1] r2 (r)2

Significant testing

H0 : B2 = 0
H1 : B2 ≠ 0

tc = B2 / Se(B2)

tc B2 / Se(B2) 3.01760351626752

By using Table
alpha 0.01 0.05
Calculate Manual:
talpha/2,n-k 0.0050 0.0250
8 3.355 2.306

Table PDF
Calculated t < t for table, 3.0176 < 3.355 at the significant level of 1%, Which
insignificant. It means Price has no effect on Qd. We will reject Hypothesis one
just click to find Calculated t < t for table, 3.0176 < 3.355 at the significant level of 1%, Which
insignificant. It means Price has no effect on Qd. We will reject Hypothesis one
tα/2,df

Calculated t > t for table, 3.0176 > 2.306 at the significant level of 5%, Which
significant. It means Price has effect on Qd. We will accept Hypothesis one.

Calculated t > t for table, 3.0176 > 2.306 at the significant level of 10%, Which
significant. It means Price has effect on Qd. We will accept Hypothesis one.
 Year Y X2
2001 15 25
2002 20 30
2003 35 45
2004 41 51
2005 47 57
xi.yi 2006 58 68
1014.6500 2007 69 79
-24.8500 2008 75 85
262.6500 2009 84 94
702.1500 2010 90 98
40.1500 10 534 632
-32.8500
-239.8500
678.6500
990.1500
2122.6500
Year Y X2 X3
2001 15 25 88
2002 20 30 80
2003 35 45 75
2004 41 51 70
2005 47 57 60
2006 58 68 50
2007 69 79 40
2008 75 85 30
2009 84 94 20
2010 90 98 10

5513.5
 0.813188596038

Qd will decrese by 0.813188

Qd will be 4.838350 Kgs
 57105392.25
7556.8109841387

0.72960670997
 392250
308025
84225
67801
5710539225
75568.109841387

0.72960670997

0.4676740487673

0.532325951233
sware, use direct sq of r)
0.532325951233

0.10

0.0500
1.86

ficant level of 1%, Which is

will reject Hypothesis one.
ficant level of 1%, Which is
will reject Hypothesis one.

ficant level of 5%, Which is

accept Hypothesis one.

ficant level of 10%, Which is

accept Hypothesis one.
X3 Y^2 X2^2 X3^2 X2Y X3Y X2X3
88 225 625 7744 375 1320 2200
80 400 900 6400 600 1600 2400
75 1225 2025 5625 1575 2625 3375
70 1681 2601 4900 2091 2870 3570
60 2209 3249 3600 2679 2820 3420
50 3364 4624 2500 3944 2900 3400
40 4761 6241 1600 5451 2760 3160
30 5625 7225 900 6375 2250 2550
20 7056 8836 400 7896 1680 1880
10 8100 9604 100 8820 900 980
523 34646 45930 33769 39806 21725 26935

Ey^2 = 6130.4
u u^2 Ex2^2 = 5987.6
32.9388 1084.96454544 Ex3^2 = 6416.1
61.2257 3748.58634049
-40.2143 1617.18992449 Coeff B2
-51.3744 2639.32897536 N 908701.4
-13.508 182.466064 D 979774.4
-25.7971 665.49036841001 Ans 0.9274598316
-38.0862 1450.55863044
-0.2198 0.0483120400001
7.5533 57.052340889997
67.4819 4553.80682761
-0.0001 15999.492329
 Ex2y = 6057.2
Ex3y = -6203.2
Ex2x3 = -6118.6

B3
-80696.4
979774.4
-0.082362225
 Year Y X2 X3 Y^2 X2^2
2001 15 25 88 225 625
2002 20 30 80 400 900
2003 35 45 75 1225 2025
2004 41 51 70 1681 2601
2005 47 57 60 2209 3249
2006 58 68 50 3364 4624
2007 69 79 40 4761 6241
2008 75 85 30 5625 7225
2009 84 94 20 7056 8836
2010 90 98 10 8100 9604
10 534 632 523 34646 45930

Y-bar = 53.4
X2-bar = 63.2
X3-bar = 52.3

Year Y X2 X3 u u^2
2001 15 25 88 32.9388 1084.9645
2002 20 30 80 61.2257 3748.5863
2003 35 45 75 -40.2143 1617.1899
2004 41 51 70 -51.3744 2639.329
2005 47 57 60 -13.508 182.46606
2006 58 68 50 -25.7971 665.49037
2007 69 79 40 -38.0862 1450.5586
2008 75 85 30 -0.2198 0.048312
2009 84 94 20 7.5533 57.052341
2010 90 98 10 67.4819 4553.8068
-0.0001 15999.5
X3^2 X2Y X3Y X2X3
7744 375 1320 2200
6400 600 1600 2400
5625 1575 2625 3375
4900 2091 2870 3570
3600 2679 2820 3420
2500 3944 2900 3400
1600 5451 2760 3160
900 6375 2250 2550
400 7896 1680 1880
100 8820 900 980
33769 39806 21725 26935

Ey^2 = 6130.4 Ex2y = 6057.2

Ex2^2 = 5987.6 Ex3y = -6203.2
Ex3^2 = 6416.1 Ex2x3 = -6118.6

Coeff B2 B3 B1
N 908701.4 -80696.4
D 979774.4 979774.4
Ans 0.92746 -0.08236 -0.9079

y = -0.9079 + 0.92745X2 + -0.0823X

+ 0.92745X2 + -0.0823X3
 Unit Price Qd
Symbol $ Kgs
n X Y
1970 727.1 61
1971 790.2 68.6
1972 855.3 63.6
1973 965 89.6
1974 1054.2 97.6
1975 1159.2 104.4
1976 1273 96.4
1977 1401.4 92.5
1978 1580.1 112.6
1979 1769.5 130.1
1980 1973.3 161.8
1981 2200.2 199.1
1982 2347.3 205.5
1983 2522.4 167
1984 2810 235.7
1985 3002 206.2
1986 3187.6 196.5
1987 3363.1 168.4
1988 3640.8 189.1
1989 3894.5 187.8
1990 4166.8 208.7
1991 4343.7 246.4
1992 4613.7 272.6
1993 4790.2 214.4
1994 5021.7 189.4
1995 5320.8 249.3

26 68773.1 4214.3

For B2 (its for sample, assume hat)

we need:
If use Capital X & Y
 n
Sum-X.Y
Sum-X
Sum-Y
Sum-X2
Step-0 (Sum-X)2

Formula:

Calculation

Step-1

Step-2
Step-3

Step-4
Step-5

B2

For B1 (its for sample, assume hat)

We Need:
Calculated
Y-bar
B2
X-bar

Formula:
 Calculation:

B1

For Error Term

Formula
Error =

Or
Error =

Calculation

1 Un-hat =
2 Un-hat =
3 Un-hat =
4 Un-hat =
5 Un-hat =
6 Un-hat =
7 Un-hat =
8 Un-hat =
9 Un-hat =
10 Un-hat =
11
12
13
14
15
16
17
18
19
20
21
22
23
 24
25
26

Standard Error

Data
Sum-X 2

n
Sum-xi2
(Error)2
n-k

Formula

Calculation

Step -6
Step-7

Var (B1-hat)

Formula
 Se(B1-hat)

Se(B1-hat)

Formula

Var (B2)

Se (B2)

F Test
Ho : Model is not good fit
H1 : Model is good fit

Fc By Formula

R2 =

Step-17 N2
Step-18 N1
 Fc [R2/(1-R2)]x[N2/N1]

Fc By ANOVA Calulation

Sourcse SS
ESS Sum-(yi-hat)
RSS (Error)2
RTSS Sum-yi2

Sum-(yi-hat)

Sum-(yi-hat)

(Error)2
From Error Term

N2
N1
From Step-17&18

Putting Values:
Sourcse SS
ESS 76621.7883860643
RSS 23248.2981523973
RTSS Sum-yi2

Fc

Fc
 Fa,N1,N2
1%
5%
10%

Table PDF
just click to find Calculated F > F for table, 79.099 > 11.3 at the significant level of 1
accept Hypothesis one.
Fa,N1,N2

Calculated F > F for table, 79.099 > 5.32 at the significant level of 5
accept Hypothesis one.

Calculated F > F for table, 79.099 > 3.46 at the significant level of 1
accept Hypothesis one.
 X-bar 2645.11923076923
Y-bar 162.088461538462

X^2 Y^2 XY
528674.41 3721 44353.1000
624416.04 4705.96 54207.7200
731538.09 4044.96 54397.0800
931225 8028.16 86464.0000
1111337.64 9525.76 102889.9200
1343744.64 10899.36 121020.4800
1620529 9292.96 122717.2000
1963921.96 8556.25 129629.5000
2496716.01 12678.76 177919.2600
3131130.25 16926.01 230211.9500
3893912.89 26179.24 319279.9400
4840880.04 39640.81 438059.8200
5509817.29 42230.25 482370.1500
6362501.76 27889 421240.8000
7896100 55554.49 662317.0000
9012004 42518.44 619012.4000
10160793.76 38612.25 626363.4000
11310441.61 28358.56 566346.0400
13255424.64 35758.81 688475.2800
15167130.25 35268.84 731387.1000
17362222.24 43555.69 869611.1600
18867729.69 60712.96 1070287.6800
21286227.69 74310.76 1257694.6200
22946016.04 45967.36 1027018.8800
25217470.89 35872.36 951109.9800
28310912.64 62150.49 1326475.4400

235882818.47 782959.49 13180859.9

If use Capital X & Y

 26
13180859.9
68773.1
4214.3
235882818.47
4729739283.61

n (sum-X.Y) 342702357.4

[(Sum-X)(Sum-Y)] 289830475.33
n(Sum-X2) 6132953280.22

[(Step-1)-(Step-2)] 52871882.0700001
[(Step-3)-(Sum-x)2] 1403213996.61

Step-4/Step-5 0.0376791296250838

Calculated
162.088461538462
0.0376791296250838
2645.11923076923
(Y-bar)-[B2(X-bar)] 62.4226711685059

Y - (Y-hat)

Y - [62.42267+(0.037679(X))]

61 - [ 62.42267+(0.037679( 727.1 ))] =

68.6 - [ 62.42267+(0.037679( 790.2 ))] =
63.6 - [ 62.42267+(0.037679( 855.3 ))] =
89.6 - [ 62.42267+(0.037679( 965 ))] =
97.6 - [ 62.42267+(0.037679( 1054.2 ))] =
104.4 - [ 62.42267+(0.037679( 1159.2 ))] =
96.4 - [ 62.42267+(0.037679( 1273 ))] =
92.5 - [ 62.42267+(0.037679( 1401.4 ))] =
112.6 - [ 62.42267+(0.037679( 1580.1 ))] =
130.1 - [ 62.42267+(0.037679( 1769.5 ))] =
161.8 - [ 62.42267+(0.037679( 1973.3 ))]
199.1 - [ 62.42267+(0.037679( 2200.2 ))]
205.5 - [ 62.42267+(0.037679( 2347.3 ))]
167 - [ 62.42267+(0.037679( 2522.4 ))]
235.7 - [ 62.42267+(0.037679( 2810 ))]
206.2 - [ 62.42267+(0.037679( 3002 ))]
196.5 - [ 62.42267+(0.037679( 3187.6 ))]
168.4 - [ 62.42267+(0.037679( 3363.1 ))]
189.1 - [ 62.42267+(0.037679( 3640.8 ))]
187.8 - [ 62.42267+(0.037679( 3894.5 ))]
208.7 - [ 62.42267+(0.037679( 4166.8 ))]
246.4 - [ 62.42267+(0.037679( 4343.7 ))]
272.6 - [ 62.42267+(0.037679( 4613.7 ))]
 214.4 - [ 62.42267+(0.037679( 4790.2 ))]
189.4 - [ 62.42267+(0.037679( 5021.7 ))]
249.3 - [ 62.42267+(0.037679( 5320.8 ))]

Data
235882818.47
26
53969769.1003846
23248.2981523973
24

n(sum-xi2) 1403213996.61
(Error)2 / n-k 968.67908968322

[(sum-X2)/Step-6] x
162.836712304359
(Step-7)
 = Sq root of [var (B1-hat)]

= (162.8367)^(1/2)
= 12.7607488927711

Step-7 / Sum-xi2 1.79485498239109E-05

(Var (B2))1/2 0.00423657288665153

0.767214598903507

N-k 24
K-1 1
79.0992488659183

df MSS
N1 Sum-(yi-hat) / N1
N2 (Error)2 / N2
N-1 MSS of ESS / MSS of RSS

= (B2)2 x (Sum-xi2)
= (0.037679)^2 x (53969769)
= 76621.7883860643

= 23248.2981523973

= 24
= 1

df MSS
1 76621.7883860643 / 1
24 23248.2981523973 / 24
N-1 MSS of ESS / MSS of RSS

= MSS of ESS / MSS of RSS

( 76621.7883860643 / 1) /
=
( 23248.2981523973 / 24 )
= 79.0992488659184
 1,24
11.3
5.32
3.46

9 > 11.3 at the significant level of 1%, Which means model is good fit. We will
accept Hypothesis one.

9 > 5.32 at the significant level of 5%, Which means model is good fit. We will
accept Hypothesis one.

9 > 3.46 at the significant level of 10%, Which means model is good fit. We will
accept Hypothesis one.
 xi yi xi^2 yi^2
-1918.0192 -101.0885 3678797.7696 10218.8771
-1854.9192 -93.4885 3440725.3527 8740.0924
-1789.8192 -98.4885 3203452.8788 9699.9771
-1680.1192 -72.4885 2822800.6296 5254.5771
-1590.9192 -64.4885 2531023.9988 4158.7617
-1485.9192 -57.6885 2207955.9604 3327.9586
-1372.1192 -65.6885 1882711.1834 4314.9740
-1243.7192 -69.5885 1546837.5250 4842.5540
-1065.0192 -49.4885 1134265.9619 2449.1078
-875.6192 -31.9885 766709.0373 1023.2617
-671.8192 -0.2885 451341.0788 0.0832
-444.9192 37.0115 197953.1219 1369.8540
-297.8192 43.4115 88696.2942 1884.5617
-122.7192 4.9115 15060.0096 24.1232
164.8808 73.6115 27185.6681 5418.6586
356.8808 44.1115 127363.8834 1945.8278
542.4808 34.4115 294285.3850 1184.1540
717.9808 6.3115 515496.3850 39.8355
995.6808 27.0115 991380.1942 729.6232
1249.3808 25.7115 1560952.3065 661.0832
1521.6808 46.6115 2315512.3634 2172.6355
1698.5808 84.3115 2885176.6296 7108.4355
1968.5808 110.5115 3875310.2450 12212.8001
2145.0808 52.3115 4601371.5065 2736.4971
2376.5808 27.3115 5648136.1527 745.9201
2675.6808 87.2115 7159267.5788 7605.8524

9.5496943686E-12 -5.115907697E-13 53969769.100385 99870.0865384616

For B2 (its for sample, assume hat)

we need:
If use Small xi & yi
 Sum-xi.yi 2033533.9257692
Sum-xi2 53969769.100385

B2 (Sum-xi.yi)/(Sum-xi2 )

Hence;
SRF:

Y-hat 62.42267+(0.037679(X))

Interpret:
slop = 0.037679 Indicate that if one $ Price increse then Qd will decrese by 0.037
Kgs
 Intercept = 62.42267 Indicate that if Price is 0$ then Qd will be 62.42267 Kgs

Error (Error)2
-28.819166318904 830.54434731667
-23.596719398247 556.80516635961
-31.04963073684 964.07956889412
-9.1830312567117 84.328063061745
-4.5440096192692 20.648023420011
-1.700318229903 2.8910820829404
-13.988203181238 195.66982823958
-22.726203425098 516.48032211895
-9.3594638891007 87.599564291381
1.0041089599084 1.0082348033683
25.025102342316 626.25574724341
53.775707830385 2891.8267526589
54.633107862535 2984.7764747194
9.5354922651828 90.925612739361
67.398974585009 4542.6217751107
30.664581696993 940.31657065154
13.971335238577 195.19820834871
-20.741352010625 430.20368322866
-10.504846307511 110.35179594442
-21.364041493395 456.42226893149
-10.724068490305 115.00564498475
20.310493479018 412.51614536123
36.337128480245 1320.3869061898
-28.513237898582 813.00473546114
-62.235956406789 3873.3142698677
-13.605784077652 185.11736036768

-143.9626 23248.298152397

Coefficient of correlation

Formula

Data
Sum-xi.yi 2033533.92576923
sum-xi2 53969769.1003846
sum-yi2 99870.0865384616

Calculation

Step-8 (Sum-xi2)(Sum-yi2)
Step-9 (Step-8)1/2

r (Sum-xi.yi) / Step-9

OR,
Formula

Calculation
 Step-10 n(Sum-Y2)
Step-11 (Sum-Y)2
Step-12 (Step-10)-(Step-11)
Step-13 (Step-3)-(Step-0)
Interpretation Step-14 (Step-12).(Step-13)
Step-15 (Step-14)1/2
It indicate that there is negative
relationship b/w Price and Qd, the
strength of relationship b/w Price and
Qd is .875907. [Its range is -1 to 1] r Step-4/Step-15

Coefficient of determination

Formula

Calculation
Interpretatuin Step-16 (Error)2 / (Sum-yi2)

It indicate the variation of 0.767214 in r2 1-(step-16)

the Qd that is predictable from the Direct formula (for verify answare, use direct sq of r)
Price. [Its range is 0 to 1] r2 (r)2

Significant testing

H0 : B2 = 0
H1 : B2 ≠ 0

tc = B2 / Se(B2)

tc B2 / Se(B2) 8.89377584976811

By using Table
alpha 0.01 0.05
Calculate Manual:
talpha/2,n-k 0.0050 0.0250
24 3.355 2.306

Table PDF
Calculated t > t for table, 8.8937 > 3.355 at the significant level of 1%, Which
significant. It means Price has effect on Qd. We will accept Hypothesis one.
just click to find Calculated t > t for table, 8.8937 > 3.355 at the significant level of 1%, Which
significant. It means Price has effect on Qd. We will accept Hypothesis one.
tα/2,df

Calculated t > t for table, 8.8937 > 2.306 at the significant level of 5%, Which
significant. It means Price has effect on Qd. We will accept Hypothesis one.

Calculated t > t for table, 8.8937 > 2.306 at the significant level of 10%, Which
significant. It means Price has effect on Qd. We will accept Hypothesis one.
 xi.yi
193889.6132
173413.5452
176276.5425
121789.2582
102595.9336
85720.3944
90132.4013
86548.5079
52706.1632
28009.7121
193.7940
-16467.1452
-12928.7910
-602.7402
12137.1271
15742.5598
18667.5979
4531.5632
26894.8694
32123.5017
70927.8817
143209.9579
217550.8894
112212.4752
64908.0771
233350.2363

2033533.9257692
 0.037679129625

Qd will decrese by 0.037679

Qd will be 62.42267 Kgs
5389965510516.2
2321629.9254007

0.875907871242
 20356946.74
17760324.49
2596622.25
1403213996.61
3.643616685E+15
60362378.060419

0.875907871242

0.2327854010965

0.767214598904
sware, use direct sq of r)
0.767214598904

0.10

0.0500
1.86

ficant level of 1%, Which is

accept Hypothesis one.
ficant level of 1%, Which is
accept Hypothesis one.

ficant level of 5%, Which is

accept Hypothesis one.

ficant level of 10%, Which is

accept Hypothesis one.
 X-bar
Y-bar

Unit Price Qd
Symbol $ Kgs
n X Y X^2
1970 727.1 61 528674.41
1971 790.2 68.6 624416.04
1972 855.3 63.6 731538.09
1973 965 89.6 931225
1974 1054.2 97.6 1111337.64
1975 1159.2 104.4 1343744.64
1976 1273 96.4 1620529
1977 1401.4 92.5 1963921.96
1978 1580.1 112.6 2496716.01
1979 1769.5 130.1 3131130.25
1980 1973.3 161.8 3893912.89
1981 2200.2 199.1 4840880.04

12 15748.5 1277.3 23218025.97

For B2 (its for sample, assume hat)

we need:
If use Capital X & Y
 n 12
Sum-X.Y 1881149.97
Sum-X 15748.5
Sum-Y 1277.3
Sum-X2 23218025.97
Step-0 (Sum-X)2 248015252.25

Formula:

Calculation

Step-1 n (sum-X.Y)

Step-2 [(Sum-X)(Sum-Y)]
Step-3 n(Sum-X2)

Step-4 [(Step-1)-(Step-2)]
Step-5 [(Step-3)-(Sum-x)2]

B2 Step-4/Step-5

For B1 (its for sample, assume hat)

We Need:
Calculated
Y-bar 106.441666666667
B2 0.080331878667028
X-bar 1312.375

Formula:
 Calculation:

B1 (Y-bar)-[B2(X-bar)]

For Error Term

Formula
Error = Y - (Y-hat)

Or
Error = Y - [1.016117+(0

Calculation

1 Un-hat = 61 - [ 62.42267+(0.
2 Un-hat = 68.6 - [ 62.42267+(0
3 Un-hat = 63.6 - [ 62.42267+(0
4 Un-hat = 89.6 - [ 62.42267+(
5 Un-hat = 97.6 - [ 62.42267+(0.
6 Un-hat = 104.4 - [ 62.42267+(0
7 Un-hat = 96.4 - [ 62.42267+(0
8 Un-hat = 92.5 - [ 62.42267+(0.
9 Un-hat = 112.6 - [ 62.42267+(0
10 Un-hat = 130.1 - [ 62.42267+(0
11 161.8 - [ 62.42267+(0
12 199.1 - [ 62.42267+(0
13
14
15
16
17
18
19
20
21
22
23
 24
25
26

Standard Error

Data
Sum-X 2
23218025.97
n 12
Sum-xi2 2550088.2825
(Error)2 1785.03209914638
n-k 10

Formula

Calculation

Step -6 n(sum-xi2)
Step-7 (Error)2 / n-k

[(sum-X2)/Step-6] x
Var (B1-hat)
(Step-7)

Formula
 Se(B1-hat) =

=
Se(B1-hat) =

Formula

Var (B2) Step-7 / Sum-xi2

Se (B2) (Var (B2))1/2

F Test
Ho : Model is not good fit
H1 : Model is good fit

Fc By Formula

R2 = 0.902143314387655

Step-17 N2 N-k
Step-18 N1 K-1
 Fc [R2/(1-R2)]x[N2/N1] 92.1902585135017

Fc By ANOVA Calulation

Sourcse SS df
ESS Sum-(yi-hat) N1
RSS (Error)2 N2
RTSS Sum-yi2 N-1

Sum-(yi-hat) =
=
Sum-(yi-hat) =

(Error)2 =
From Error Term

N2 =
N1 =
From Step-17&18

Putting Values:
Sourcse SS df
ESS 16456.2570675203 1
RSS 1785.03209914638 10
RTSS Sum-yi2 N-1

Fc =

Fc =
 Fa,N1,N2 1,10
1% 11.3
5% 5.32
10% 3.46

Table PDF
just click to find Calculated F > F for table, 92.190 > 11.3 at the significant level of 1%, Which m
accept Hypothesis one.
Fa,N1,N2

Calculated F > F for table, 92.190 > 5.32 at the significant level of 5%, Which m
accept Hypothesis one.

Calculated F > F for table, 92.190 > 3.46 at the significant level of 10%, Which
accept Hypothesis one.
 1312.375
106.441666666667

Y^2 XY xi
3721 44353.1000 -585.2750
4705.96 54207.7200 -522.1750
4044.96 54397.0800 -457.0750
8028.16 86464.0000 -347.3750
9525.76 102889.9200 -258.1750
10899.36 121020.4800 -153.1750
9292.96 122717.2000 -39.3750
8556.25 129629.5000 89.0250
12678.76 177919.2600 267.7250
16926.01 230211.9500 457.1250
26179.24 319279.9400 660.9250
39640.81 438059.8200 887.8250

154199.23 1881149.97 0

For B2 (its for sample, a

we need:
 22573799.64

20115559.05
278616311.64

2458240.59
30601059.39

0.080331878667028

Hence;

Interpret:
 1.01611740102581

Y - [1.016117+(0.080331(X))]

Error
61 - [ 62.42267+(0.037679( 727.1 ))] = 1.5745736201781
68.6 - [ 62.42267+(0.037679( 790.2 ))] = 4.1056320762887
63.6 - [ 62.42267+(0.037679( 855.3 ))] = -6.1239732249348
89.6 - [ 62.42267+(0.037679( 965 ))] = 11.063619685292
97.6 - [ 62.42267+(0.037679( 1054.2 ))] = 11.898016108193
04.4 - [ 62.42267+(0.037679( 1159.2 ))] = 10.263168848155
96.4 - [ 62.42267+(0.037679( 1273 ))] = -6.8785989441524
92.5 - [ 62.42267+(0.037679( 1401.4 ))] = -21.093212164999
12.6 - [ 62.42267+(0.037679( 1580.1 ))] = -15.348518882797
30.1 - [ 62.42267+(0.037679( 1769.5 ))] = -13.063376702332
61.8 - [ 62.42267+(0.037679( 1973.3 ))] 2.2649864253279
99.1 - [ 62.42267+(0.037679( 2200.2 ))] 21.337683155779
 -23.6027

Coefficient of correlation

OR,
30601059.39
178.503209914638

135.436231494678
Sq root of [var (B1-hat)]

(135.4362)^(1/2)
11.6377073126401
Interpretation

It indicate that there is negative

relationship b/w Price and Qd, the
strength of relationship b/w Price a
Qd is .949812. [Its range is -1 to 1

Coefficient of determination

6.9998835389197E-05
Interpretatuin

0.00836653066624374 It indicate the variation of 0.902143

the Qd that is predictable from th
Price. [Its range is 0 to 1]

Significant testing

By using Table
Calculate Manual:

10
1
Table PDF
 just click to find
tα/2,df

MSS
Sum-(yi-hat) / N1
(Error)2 / N2
MSS of ESS / MSS of RSS

(B2)2 x (Sum-xi2)
(0.080331)^2 x (2550088.)
16456.2570675203

1785.03209914638

10
1

MSS
16456.2570675203 / 1
1785.03209914638 / 10
MSS of ESS / MSS of RSS

MSS of ESS / MSS of RSS

( 16456.2570675203 / 1) /
( 1785.03209914638 / 10 )
92.1902585135015
t level of 1%, Which means model is good fit. We will
esis one.

t level of 5%, Which means model is good fit. We will

esis one.

level of 10%, Which means model is good fit. We will

esis one.
 yi xi^2 yi^2 xi.yi
-45.4417 342546.8256 2064.9451 26595.8715
-37.8417 272666.7306 1431.9917 19759.9723
-42.8417 208917.5556 1835.4084 19581.8548
-16.8417 120669.3906 283.6417 5850.3740
-8.8417 66654.3306 78.1751 2282.6973
-2.0417 23462.5806 4.1684 312.7323
-10.0417 1550.3906 100.8351 395.3906
-13.9417 7925.4506 194.3701 -1241.1569
6.1583 71676.6756 37.9251 1648.7398
23.6583 208963.2656 559.7167 10814.8156
55.3583 436821.8556 3064.5451 36587.7065
92.6583 788233.2306 8585.5667 82264.3848

0 2550088.2825 18241.2891666667 204853.3825

For B2 (its for sample, assume hat)

If use Small xi & yi

 Sum-xi.yi 204853.3825
Sum-xi2 2550088.2825

B2 (Sum-xi.yi)/(Sum-xi2 ) 0.080331878667

SRF:

Y-hat 1.016117+(0.080331(X))

slop = 0.080331 Indicate that if one $ Price increse then Qd will decrese by 0.080331
Kgs
 Intercept = 1.016117 Indicate that if Price is 0$ then Qd will be 1.016117 Kgs

(Error)2
2.4792820853609
16.85621474585
37.503048059719
122.40368054078
141.56278731083
105.33263480575
47.315123434495
444.92359943765
235.57703189557
170.65181086703
5.1301635069196
455.29672245642
 1785.0320991464

efficient of correlation

Formula

Data
Sum-xi.yi 204853.3825
sum-xi2 2550088.2825
sum-yi2 18241.2891666667

Calculation

Step-8 (Sum-xi2)(Sum-yi2) 46516897761.611

Step-9 (Step-8)1/2 215677.76371618

r (Sum-xi.yi) / Step-9 0.949812252178

Formula

Calculation
 Step-10 n(Sum-Y2) 1850390.76
Step-11 (Sum-Y)2 1631495.29
Step-12 (Step-10)-(Step-11) 218895.47
Step-13 (Step-3)-(Step-0) 30601059.39
Step-14 (Step-12).(Step-13) 6698433277672
Step-15 (Step-14)1/2 2588133.1645941
ate that there is negative
ship b/w Price and Qd, the
of relationship b/w Price and
49812. [Its range is -1 to 1] r Step-4/Step-15 0.949812252178

fficient of determination

Formula

Calculation
Step-16 (Error)2 / (Sum-yi2) 0.0978566856123

the variation of 0.902143 in r2 1-(step-16) 0.902143314388

hat is predictable from the Direct formula (for verify answare, use direct sq of r)
ce. [Its range is 0 to 1] r2 (r)2 0.902143314388

H0 : B2 = 0
H1 : B2 ≠ 0

tc = B2 / Se(B2)

tc B2 / Se(B2) 9.60157583490864

alpha 0.01 0.05 0.10

talpha/2,n-k 0.0050 0.0250 0.0500

10 3.355 2.306 1.86

Calculated t > t for table, 9.6015 > 3.355 at the significant level of 1%, Which is
significant. It means Price has effect on Qd. We will accept Hypothesis one.
Calculated t > t for table, 9.6015 > 3.355 at the significant level of 1%, Which is
significant. It means Price has effect on Qd. We will accept Hypothesis one.

Calculated t > t for table, 9.6015 > 2.306 at the significant level of 5%, Which is
significant. It means Price has effect on Qd. We will accept Hypothesis one.

Calculated t > t for table, 9.6015 > 2.306 at the significant level of 10%, Which is
significant. It means Price has effect on Qd. We will accept Hypothesis one.
 Unit Price Qd
Symbol $ Kgs
n X Y

1982 2347.3 205.5

1983 2522.4 167
1984 2810 235.7
1985 3002 206.2
1986 3187.6 196.5
1987 3363.1 168.4
1988 3640.8 189.1
1989 3894.5 187.8
1990 4166.8 208.7
1991 4343.7 246.4
1992 4613.7 272.6
1993 4790.2 214.4
1994 5021.7 189.4
1995 5320.8 249.3

14 53024.6 2937

For B2 (its for sample, assume hat)

we need:
If use Capital X & Y
 n
Sum-X.Y
Sum-X
Sum-Y
Sum-X2
Step-0 (Sum-X)2

Formula:

Calculation

Step-1

Step-2
Step-3

Step-4
Step-5

B2

For B1 (its for sample, assume hat)

We Need:
Calculated
Y-bar
B2
X-bar

Formula:
 Calculation:

B1

For Error Term

Formula
Error =

Or
Error =

Calculation

1 Un-hat =
2 Un-hat =
3 Un-hat =
4 Un-hat =
5 Un-hat =
6 Un-hat =
7 Un-hat =
8 Un-hat =
9 Un-hat =
10 Un-hat =
11
12
13
14
15
16
17
18
19
20
21
22
23
 24
25
26

Standard Error

Data
Sum-X 2

n
Sum-xi2
(Error)2
n-k

Formula

Calculation

Step -6
Step-7

Var (B1-hat)

Formula
 Se(B1-hat)

Se(B1-hat)

Formula

Var (B2)

Se (B2)

F Test
Ho : Model is not good fit
H1 : Model is good fit

Fc By Formula

R2 =

Step-17 N2
Step-18 N1
 Fc [R2/(1-R2)]x[N2/N1]

Fc By ANOVA Calulation

Sourcse SS
ESS Sum-(yi-hat)
RSS (Error)2
RTSS Sum-yi2

Sum-(yi-hat)

Sum-(yi-hat)

(Error)2
From Error Term

N2
N1
From Step-17&18

Putting Values:
Sourcse SS
ESS 2614.39643836959
RSS 10005.2207044875
RTSS Sum-yi2

Fc

Fc
 Fa,N1,N2
1%
5%
10%

Table PDF
just click to find Calculated F < F for table, 3.1356 < 11.3 at the significant level of 1
will reject Hypothesis one
Fa,N1,N2

Calculated F < F for table, 3.1356 < 5.32 at the significant level of 5
will reject Hypothesis one

Calculated F < F for table, 3.1356 < 3.46 at the significant level of 1
will reject Hypothesis one
 X-bar 3787.47142857143
Y-bar 209.785714285714

X^2 Y^2 XY

5509817.29 42230.25 482370.1500

6362501.76 27889 421240.8000
7896100 55554.49 662317.0000
9012004 42518.44 619012.4000
10160793.76 38612.25 626363.4000
11310441.61 28358.56 566346.0400
13255424.64 35758.81 688475.2800
15167130.25 35268.84 731387.1000
17362222.24 43555.69 869611.1600
18867729.69 60712.96 1070287.6800
21286227.69 74310.76 1257694.6200
22946016.04 45967.36 1027018.8800
25217470.89 35872.36 951109.9800
28310912.64 62150.49 1326475.4400

212664792.5 628760.26 11299709.93

If use Capital X & Y

 14
11299709.93
53024.6
2937
212664792.5
2811608205.16

n (sum-X.Y) 158195939.02

[(Sum-X)(Sum-Y)] 155733250.2
n(Sum-X2) 2977307095

[(Step-1)-(Step-2)] 2462688.81999999
[(Step-3)-(Sum-x)2] 165698889.840001

Step-4/Step-5 0.0148624340354843

Calculated
209.785714285714
0.0148624340354843
3787.47142857143
(Y-bar)-[B2(X-bar)] 153.49467001729

Y - (Y-hat)

Y - [153.4946+(0.014862(X))]

205.5 - [ 62.42267+(0.037679( 2347.3 ))]

167 - [ 62.42267+(0.037679( 2522.4 ))]
235.7 - [ 62.42267+(0.037679( 2810 ))]
206.2 - [ 62.42267+(0.037679( 3002 ))]
196.5 - [ 62.42267+(0.037679( 3187.6 ))]
168.4 - [ 62.42267+(0.037679( 3363.1 ))]
189.1 - [ 62.42267+(0.037679( 3640.8 ))]
187.8 - [ 62.42267+(0.037679( 3894.5 ))]
208.7 - [ 62.42267+(0.037679( 4166.8 ))]
246.4 - [ 62.42267+(0.037679( 4343.7 ))]
272.6 - [ 62.42267+(0.037679( 4613.7 ))]
 214.4 - [ 62.42267+(0.037679( 4790.2 ))]
189.4 - [ 62.42267+(0.037679( 5021.7 ))]
249.3 - [ 62.42267+(0.037679( 5320.8 ))]

Data
212664792.5
14
11835634.9885714
10005.2207044875
12

n(sum-xi2) 165698889.84
(Error)2 / n-k 833.768392040625

[(sum-X2)/Step-6] x
1070.09275836183
(Step-7)
 = Sq root of [var (B1-hat)]

= (1070.092)^(1/2)
= 32.7122722897971

Step-7 / Sum-xi2 7.04455986388325E-05

(Var (B2))1/2 0.00839318763276697

0.207169235704542

N-k 12
K-1 1
3.13563870173944

df MSS
N1 Sum-(yi-hat) / N1
N2 (Error)2 / N2
N-1 MSS of ESS / MSS of RSS

= (B2)2 x (Sum-xi2)
= (0.014862)^2 x (11835634)
= 2614.39643836959

= 10005.2207044875

= 12
= 1

df MSS
1 2614.39643836959 / 1
12 10005.2207044875 / 12
N-1 MSS of ESS / MSS of RSS

= MSS of ESS / MSS of RSS

( 2614.39643836959 / 1) /
=
( 10005.2207044875 / 12 )
= 3.13563870173937
 1,12
11.3
5.32
3.46

6 < 11.3 at the significant level of 1%, Which means model is not good fit. We
will reject Hypothesis one.

6 < 5.32 at the significant level of 5%, Which means model is not good fit. We
will reject Hypothesis one.

6 < 3.46 at the significant level of 10%, Which means model is not good fit. We
will reject Hypothesis one.
 xi yi xi^2 yi^2

-1440.1714 -4.2857 2074093.7437 18.3673

-1265.0714 -42.7857 1600405.7194 1830.6173
-977.4714 25.9143 955450.3937 671.5502
-785.4714 -3.5857 616965.3651 12.8573
-599.8714 -13.2857 359845.7308 176.5102
-424.3714 -41.3857 180091.1094 1712.7773
-146.6714 -20.6857 21512.5080 427.8988
107.0286 -21.9857 11455.1151 483.3716
379.3286 -1.0857 143890.1651 1.1788
556.2286 36.6143 309390.2237 1340.6059
826.2286 62.8143 682653.6522 3945.6345
1002.7286 4.6143 1005464.5880 21.2916
1234.2286 -20.3857 1523320.1665 415.5773
1533.3286 39.5143 2351096.5080 1561.3788

6.8212102633E-12 -2.557953849E-13 11835634.988571 12619.6171428571

For B2 (its for sample, assume hat)

we need:
If use Small xi & yi
 Sum-xi.yi 175906.34428571
Sum-xi2 11835634.988571

B2 (Sum-xi.yi)/(Sum-xi2 )

Hence;
SRF:

Y-hat 153.4946+(0.014862(X))

Interpret:
slop = 0.014862 Indicate that if one $ Price increse then Qd will decrese by 0.014
Kgs
 Intercept = 153.4946 Indicate that if Price is 0$ then Qd will be 153.4946 Kgs

Error (Error)2

17.118738571218 293.0512102697
-23.983673628396 575.2166007134
40.441890342999 1635.5464945152
8.0883030081861 65.420645552233
-4.3701647487997 19.098339931652
-35.078521922027 1230.5027002341
-18.505819853681 342.4653684569
-23.576419368484 555.84755023861
-6.723460156346 45.204916473972
28.347375262777 803.5736842887
50.534518073196 2553.7375168902
-10.288701534067 105.85737925711
-38.729355013281 1499.9629397448
16.725290966705 279.73535792095

0.0000 10005.220704488

Coefficient of correlation

Formula

Data
Sum-xi.yi 175906.344285714
sum-xi2 11835634.9885714
sum-yi2 12619.6171428571

Calculation

Step-8 (Sum-xi2)(Sum-yi2)
Step-9 (Step-8)1/2

r (Sum-xi.yi) / Step-9

OR,
Formula

Calculation
 Step-10 n(Sum-Y2)
Step-11 (Sum-Y)2
Step-12 (Step-10)-(Step-11)
Step-13 (Step-3)-(Step-0)
Interpretation Step-14 (Step-12).(Step-13)
Step-15 (Step-14)1/2
It indicate that there is negative
relationship b/w Price and Qd, the
strength of relationship b/w Price and
Qd is .455158. [Its range is -1 to 1] r Step-4/Step-15

Coefficient of determination

Formula

Calculation
Interpretatuin Step-16 (Error)2 / (Sum-yi2)

It indicate the variation of 0.207169 in r2 1-(step-16)

the Qd that is predictable from the Direct formula (for verify answare, use direct sq of r)
Price. [Its range is 0 to 1] r2 (r)2

Significant testing

H0 : B2 = 0
H1 : B2 ≠ 0

tc = B2 / Se(B2)

tc B2 / Se(B2) 1.77077347555789

By using Table
alpha 0.01 0.05
Calculate Manual:
talpha/2,n-k 0.0050 0.0250
12 3.355 2.306

Table PDF
Calculated t < t for table, 1.7707 < 3.355 at the significant level of 1%, Which
insignificant. It means Price has no effect on Qd. We will reject Hypothesis one
just click to find Calculated t < t for table, 1.7707 < 3.355 at the significant level of 1%, Which
insignificant. It means Price has no effect on Qd. We will reject Hypothesis one
tα/2,df

Calculated t < t for table, 1.7707 < 2.306 at the significant level of 5%, Which
insignificant. It means Price has no effect on Qd. We will reject Hypothesis one

Calculated t < t for table, 1.7707 < 2.306 at the significant level of 10%, Which
insignificant. It means Price has no effect on Qd. We will reject Hypothesis one
 xi.yi

6172.1633
54126.9847
-25330.4739
2816.4761
7969.7204
17562.9147
3034.0033
-2353.0996
-411.8424
20365.9118
51898.9576
4626.8761
-25160.6310
60588.3833

175906.34428571
 0.014862434035

Qd will decrese by 0.014862

Qd will be 153.4946 Kgs
149361182198.38
386472.74444439

0.455158473177
 8802643.64
8625969
176674.64
165698889.84
29274791710882
5410618.4222214

0.455158473177

0.7928307642955

0.207169235705
sware, use direct sq of r)
0.207169235705

0.10

0.0500
1.86

ficant level of 1%, Which is

will reject Hypothesis one.
ficant level of 1%, Which is
will reject Hypothesis one.

ficant level of 5%, Which is

will reject Hypothesis one.

ficant level of 10%, Which is

will reject Hypothesis one.
 Unit Price Qd
Symbol $ Kgs
n X Y
1970 727.1 61
1971 790.2 68.6
1972 855.3 63.6
1973 965 89.6
1974 1054.2 97.6
1975 1159.2 104.4
1976 1273 96.4
1977 1401.4 92.5
1978 1580.1 112.6
1979 1769.5 130.1
1980 1973.3 161.8
1981 2200.2 199.1
1982 2347.3 205.5
1983 2522.4 167
1984 2810 235.7
1985 3002 206.2
1986 3187.6 196.5
1987 3363.1 168.4
1988 3640.8 189.1
1989 3894.5 187.8
1990 4166.8 208.7
1991 4343.7 246.4
1992 4613.7 272.6
1993 4790.2 214.4
1994 5021.7 189.4
1995 5320.8 249.3

26 68773.1 4214.3

For B2 (its for sample, assume hat)

we need:
If use Capital X & Y
 n
Sum-X.Y
Sum-X
Sum-Y
Sum-X2
Step-0 (Sum-X)2

Formula:

Calculation

Step-1

Step-2
Step-3

Step-4
Step-5

B2

For B1 (its for sample, assume hat)

We Need:
Calculated
Y-bar
B2
X-bar

Formula:
 Calculation:

B1

For Error Term

Formula
Error =

Or
Error =

Calculation

1 Un-hat =
2 Un-hat =
3 Un-hat =
4 Un-hat =
5 Un-hat =
6 Un-hat =
7 Un-hat =
8 Un-hat =
9 Un-hat =
10 Un-hat =
11
12
13
14
15
16
17
18
19
20
21
22
23
 24
25
26

Standard Error

Data
Sum-X 2

n
Sum-xi2
(Error)2
n-k

Formula

Calculation

Step -6
Step-7

Var (B1-hat)

Formula
 Se(B1-hat)

Se(B1-hat)

Formula

Var (B2)

Se (B2)

F Test
Ho : Model is not good fit
H1 : Model is good fit

Fc By Formula

R2 =

Step-17 N2
Step-18 N1
 Fc [R2/(1-R2)]x[N2/N1]

Fc By ANOVA Calulation

Sourcse SS
ESS Sum-(yi-hat)
RSS (Error)2
RTSS Sum-yi2

Sum-(yi-hat)

Sum-(yi-hat)

(Error)2
From Error Term

N2
N1
From Step-17&18

Putting Values:
Sourcse SS
ESS 76621.7883860643
RSS 23248.2981523973
RTSS Sum-yi2

Fc

Fc
 Fa,N1,N2
1%
5%
10%

Table PDF
just click to find Calculated F > F for table, 79.099 > 11.3 at the significant level of 1
accept Hypothesis one.
Fa,N1,N2

Calculated F > F for table, 79.099 > 5.32 at the significant level of 5
accept Hypothesis one.

Calculated F > F for table, 79.099 > 3.46 at the significant level of 1
accept Hypothesis one.
 X-bar 2645.11923076923
Y-bar 162.088461538462

X^2 Y^2 XY
528674.41 3721 44353.1000
624416.04 4705.96 54207.7200
731538.09 4044.96 54397.0800
931225 8028.16 86464.0000
1111337.64 9525.76 102889.9200
1343744.64 10899.36 121020.4800
1620529 9292.96 122717.2000
1963921.96 8556.25 129629.5000
2496716.01 12678.76 177919.2600
3131130.25 16926.01 230211.9500
3893912.89 26179.24 319279.9400
4840880.04 39640.81 438059.8200
5509817.29 42230.25 482370.1500
6362501.76 27889 421240.8000
7896100 55554.49 662317.0000
9012004 42518.44 619012.4000
10160793.76 38612.25 626363.4000
11310441.61 28358.56 566346.0400
13255424.64 35758.81 688475.2800
15167130.25 35268.84 731387.1000
17362222.24 43555.69 869611.1600
18867729.69 60712.96 1070287.6800
21286227.69 74310.76 1257694.6200
22946016.04 45967.36 1027018.8800
25217470.89 35872.36 951109.9800
28310912.64 62150.49 1326475.4400

235882818.47 782959.49 13180859.9

If use Capital X & Y

 26
13180859.9
68773.1
4214.3
235882818.47
4729739283.61

n (sum-X.Y) 342702357.4

[(Sum-X)(Sum-Y)] 289830475.33
n(Sum-X2) 6132953280.22

[(Step-1)-(Step-2)] 52871882.0700001
[(Step-3)-(Sum-x)2] 1403213996.61

Step-4/Step-5 0.0376791296250838

Calculated
162.088461538462
0.0376791296250838
2645.11923076923
(Y-bar)-[B2(X-bar)] 62.4226711685059

Y - (Y-hat)

Y - [62.42267+(0.037679(X))]

61 - [ 62.42267+(0.037679( 727.1 ))] =

68.6 - [ 62.42267+(0.037679( 790.2 ))] =
63.6 - [ 62.42267+(0.037679( 855.3 ))] =
89.6 - [ 62.42267+(0.037679( 965 ))] =
97.6 - [ 62.42267+(0.037679( 1054.2 ))] =
104.4 - [ 62.42267+(0.037679( 1159.2 ))] =
96.4 - [ 62.42267+(0.037679( 1273 ))] =
92.5 - [ 62.42267+(0.037679( 1401.4 ))] =
112.6 - [ 62.42267+(0.037679( 1580.1 ))] =
130.1 - [ 62.42267+(0.037679( 1769.5 ))] =
161.8 - [ 62.42267+(0.037679( 1973.3 ))]
199.1 - [ 62.42267+(0.037679( 2200.2 ))]
205.5 - [ 62.42267+(0.037679( 2347.3 ))]
167 - [ 62.42267+(0.037679( 2522.4 ))]
235.7 - [ 62.42267+(0.037679( 2810 ))]
206.2 - [ 62.42267+(0.037679( 3002 ))]
196.5 - [ 62.42267+(0.037679( 3187.6 ))]
168.4 - [ 62.42267+(0.037679( 3363.1 ))]
189.1 - [ 62.42267+(0.037679( 3640.8 ))]
187.8 - [ 62.42267+(0.037679( 3894.5 ))]
208.7 - [ 62.42267+(0.037679( 4166.8 ))]
246.4 - [ 62.42267+(0.037679( 4343.7 ))]
272.6 - [ 62.42267+(0.037679( 4613.7 ))]
 214.4 - [ 62.42267+(0.037679( 4790.2 ))]
189.4 - [ 62.42267+(0.037679( 5021.7 ))]
249.3 - [ 62.42267+(0.037679( 5320.8 ))]

Data
235882818.47
26
53969769.1003846
23248.2981523973
24

n(sum-xi2) 1403213996.61
(Error)2 / n-k 968.67908968322

[(sum-X2)/Step-6] x
162.836712304359
(Step-7)
 = Sq root of [var (B1-hat)]

= (162.8367)^(1/2)
= 12.7607488927711

Step-7 / Sum-xi2 1.79485498239109E-05

(Var (B2))1/2 0.00423657288665153

0.767214598903507

N-k 24
K-1 1
79.0992488659183

df MSS
N1 Sum-(yi-hat) / N1
N2 (Error)2 / N2
N-1 MSS of ESS / MSS of RSS

= (B2)2 x (Sum-xi2)
= (0.037679)^2 x (53969769)
= 76621.7883860643

= 23248.2981523973

= 24
= 1

df MSS
1 76621.7883860643 / 1
24 23248.2981523973 / 24
N-1 MSS of ESS / MSS of RSS

= MSS of ESS / MSS of RSS

( 76621.7883860643 / 1) /
=
( 23248.2981523973 / 24 )
= 79.0992488659184
 1,24
11.3
5.32
3.46

9 > 11.3 at the significant level of 1%, Which means model is good fit. We will
accept Hypothesis one.

9 > 5.32 at the significant level of 5%, Which means model is good fit. We will
accept Hypothesis one.

9 > 3.46 at the significant level of 10%, Which means model is good fit. We will
accept Hypothesis one.
 xi yi xi^2 yi^2
-1918.0192 -101.0885 3678797.7696 10218.8771
-1854.9192 -93.4885 3440725.3527 8740.0924
-1789.8192 -98.4885 3203452.8788 9699.9771
-1680.1192 -72.4885 2822800.6296 5254.5771
-1590.9192 -64.4885 2531023.9988 4158.7617
-1485.9192 -57.6885 2207955.9604 3327.9586
-1372.1192 -65.6885 1882711.1834 4314.9740
-1243.7192 -69.5885 1546837.5250 4842.5540
-1065.0192 -49.4885 1134265.9619 2449.1078
-875.6192 -31.9885 766709.0373 1023.2617
-671.8192 -0.2885 451341.0788 0.0832
-444.9192 37.0115 197953.1219 1369.8540
-297.8192 43.4115 88696.2942 1884.5617
-122.7192 4.9115 15060.0096 24.1232
164.8808 73.6115 27185.6681 5418.6586
356.8808 44.1115 127363.8834 1945.8278
542.4808 34.4115 294285.3850 1184.1540
717.9808 6.3115 515496.3850 39.8355
995.6808 27.0115 991380.1942 729.6232
1249.3808 25.7115 1560952.3065 661.0832
1521.6808 46.6115 2315512.3634 2172.6355
1698.5808 84.3115 2885176.6296 7108.4355
1968.5808 110.5115 3875310.2450 12212.8001
2145.0808 52.3115 4601371.5065 2736.4971
2376.5808 27.3115 5648136.1527 745.9201
2675.6808 87.2115 7159267.5788 7605.8524

9.5496943686E-12 -5.115907697E-13 53969769.100385 99870.0865384616

For B2 (its for sample, assume hat)

we need:
If use Small xi & yi
 Sum-xi.yi 2033533.9257692
Sum-xi2 53969769.100385

B2 (Sum-xi.yi)/(Sum-xi2 )

Hence;
SRF:

Y-hat 62.42267+(0.037679(X))

Interpret:
slop = 0.037679 Indicate that if one $ Price increse then Qd will decrese by 0.037
Kgs
 Intercept = 62.42267 Indicate that if Price is 0$ then Qd will be 62.42267 Kgs

Error (Error)2
-28.819166318904 830.54434731667
-23.596719398247 556.80516635961
-31.04963073684 964.07956889412
-9.1830312567117 84.328063061745
-4.5440096192692 20.648023420011
-1.700318229903 2.8910820829404
-13.988203181238 195.66982823958
-22.726203425098 516.48032211895
-9.3594638891007 87.599564291381
1.0041089599084 1.0082348033683
25.025102342316 626.25574724341
53.775707830385 2891.8267526589
54.633107862535 2984.7764747194
9.5354922651828 90.925612739361
67.398974585009 4542.6217751107
30.664581696993 940.31657065154
13.971335238577 195.19820834871
-20.741352010625 430.20368322866
-10.504846307511 110.35179594442
-21.364041493395 456.42226893149
-10.724068490305 115.00564498475
20.310493479018 412.51614536123
36.337128480245 1320.3869061898
-28.513237898582 813.00473546114
-62.235956406789 3873.3142698677
-13.605784077652 185.11736036768

-143.9626 23248.298152397

Coefficient of correlation

Formula

Data
Sum-xi.yi 2033533.92576923
sum-xi2 53969769.1003846
sum-yi2 99870.0865384616

Calculation

Step-8 (Sum-xi2)(Sum-yi2)
Step-9 (Step-8)1/2

r (Sum-xi.yi) / Step-9

OR,
Formula

Calculation
 Step-10 n(Sum-Y2)
Step-11 (Sum-Y)2
Step-12 (Step-10)-(Step-11)
Step-13 (Step-3)-(Step-0)
Interpretation Step-14 (Step-12).(Step-13)
Step-15 (Step-14)1/2
It indicate that there is negative
relationship b/w Price and Qd, the
strength of relationship b/w Price and
Qd is .875907. [Its range is -1 to 1] r Step-4/Step-15

Coefficient of determination

Formula

Calculation
Interpretatuin Step-16 (Error)2 / (Sum-yi2)

It indicate the variation of 0.767214 in r2 1-(step-16)

the Qd that is predictable from the Direct formula (for verify answare, use direct sq of r)
Price. [Its range is 0 to 1] r2 (r)2

Significant testing

H0 : B2 = 0
H1 : B2 ≠ 0

tc = B2 / Se(B2)

tc B2 / Se(B2) 8.89377584976811

By using Table
alpha 0.01 0.05
Calculate Manual:
talpha/2,n-k 0.0050 0.0250
24 3.355 2.306

Table PDF
Calculated t > t for table, 8.8937 > 3.355 at the significant level of 1%, Which
significant. It means Price has effect on Qd. We will accept Hypothesis one.
just click to find Calculated t > t for table, 8.8937 > 3.355 at the significant level of 1%, Which
significant. It means Price has effect on Qd. We will accept Hypothesis one.
tα/2,df

Calculated t > t for table, 8.8937 > 2.306 at the significant level of 5%, Which
significant. It means Price has effect on Qd. We will accept Hypothesis one.

Calculated t > t for table, 8.8937 > 2.306 at the significant level of 10%, Which
significant. It means Price has effect on Qd. We will accept Hypothesis one.
 xi.yi
193889.6132
173413.5452
176276.5425
121789.2582
102595.9336
85720.3944
90132.4013
86548.5079
52706.1632
28009.7121
193.7940
-16467.1452
-12928.7910
-602.7402
12137.1271
15742.5598
18667.5979
4531.5632
26894.8694
32123.5017
70927.8817
143209.9579
217550.8894
112212.4752
64908.0771
233350.2363

2033533.9257692
 0.037679129625

Qd will decrese by 0.037679

Qd will be 62.42267 Kgs
5389965510516.2
2321629.9254007

0.875907871242
 20356946.74
17760324.49
2596622.25
1403213996.61
3.643616685E+15
60362378.060419

0.875907871242

0.2327854010965

0.767214598904
sware, use direct sq of r)
0.767214598904

0.10

0.0500
1.86

ficant level of 1%, Which is

accept Hypothesis one.
ficant level of 1%, Which is
accept Hypothesis one.

ficant level of 5%, Which is

accept Hypothesis one.

ficant level of 10%, Which is

accept Hypothesis one.
 Unit Price Qd
Symbol $ Kgs
n X Y
1970 727.1 61
1971 790.2 68.6
1972 855.3 63.6
1973 965 89.6
1974 1054.2 97.6
1975 1159.2 104.4
1976 1273 96.4
1977 1401.4 92.5
1978 1580.1 112.6
1979 1769.5 130.1

10 11575 916.4

For B2 (its for sample, assume hat)

we need:
If use Capital X & Y
n
Sum-X.Y
Sum-X
Sum-Y
Sum-X2
Step-0 (Sum-X)2

Formula:

Calculation
 Step-1

Step-2
Step-3

Step-4
Step-5

B2

For B1 (its for sample, assume hat)

We Need:
Calculated
Y-bar
B2
X-bar

Formula:

Calculation:

B1

For Error Term

Formula
Error =

Or
 Error =

Calculation

1 Un-hat =
2 Un-hat =
3 Un-hat =
4 Un-hat =
5 Un-hat =
6 Un-hat =
7 Un-hat =
8 Un-hat =
9 Un-hat =
10 Un-hat =

Standard Error

Data
Sum-X 2

n
Sum-xi2
(Error)2
n-k

Formula
 Calculation

Step -6
Step-7

Var (B1-hat)

Formula
Se(B1-hat)

Se(B1-hat)

Formula

Var (B2)

Se (B2)

F Test
Ho : Model is not good fit
H1 : Model is good fit

Fc By Formula
 R2 =

Step-17 N2
Step-18 N1

Fc [R2/(1-R2)]x[N2/N1]

Fc By ANOVA Calulation

Sourcse SS
ESS Sum-(yi-hat)
RSS (Error)2
RTSS Sum-yi2

Sum-(yi-hat)

Sum-(yi-hat)

(Error)2
From Error Term

N2
N1
From Step-17&18

Putting Values:
Sourcse SS
ESS 3666.46003989759
RSS 733.8239601024
RTSS Sum-yi2
 Fc

Fc

Fa,N1,N2
1%
5%
10%

Table PDF
just click to find Calculated F > F for table, 39.971 > 11.3 at the significant level of 1
accept Hypothesis one.
Fa,N1,N2

Calculated F > F for table, 39.971 > 5.32 at the significant level of 5
accept Hypothesis one.

Calculated F > F for table, 39.971 > 3.46 at the significant level of 1
accept Hypothesis one.
 X-bar 1157.5
Y-bar 91.64

X^2 Y^2 XY
528674.41 3721 44353.1000
624416.04 4705.96 54207.7200
731538.09 4044.96 54397.0800
931225 8028.16 86464.0000
1111337.64 9525.76 102889.9200
1343744.64 10899.36 121020.4800
1620529 9292.96 122717.2000
1963921.96 8556.25 129629.5000
2496716.01 12678.76 177919.2600
3131130.25 16926.01 230211.9500

14483233.04 88379.18 1123810.21

If use Capital X & Y

10
1123810.21
11575
916.4
14483233.04
133980625
 n (sum-X.Y) 11238102.1

[(Sum-X)(Sum-Y)] 10607330
n(Sum-X2) 144832330.4

[(Step-1)-(Step-2)] 630772.1
[(Step-3)-(Sum-x)2] 10851705.4

Step-4/Step-5 0.0581265411056956

Calculated
91.64
0.0581265411056956
1157.5

(Y-bar)-[B2(X-bar)] 24.3585286701573

Y - (Y-hat)
 Y - [24.35852+(0.058126(X))]

61 - [ 24.35852+(0.058126( 727.1 ))] =

68.6 - [ 24.35852+(0.058126( 790.2 ))] =
63.6 - [ 24.35852+(0.058126( 855.3 ))] =
89.6 - [ 24.35852+(0.058126( 965 ))] =
97.6 - [ 24.35852+(0.058126( 1054.2 ))] =
104.4 - [ 24.35852+(0.058126( 1159.2 ))] =
96.4 - [ 24.35852+(0.058126( 1273 ))] =
92.5 - [ 24.35852+(0.058126( 1401.4 ))] =
112.6 - [ 24.35852+(0.058126( 1580.1 ))] =
130.1 - [ 24.35852+(0.058126( 1769.5 ))] =

Data
14483233.04
10
1085170.54
733.8239601024
8
 n(sum-xi2) 10851705.4
(Error)2 / n-k 91.7279950128

[(sum-X2)/Step-6] x
122.424805972188
(Step-7)

= Sq root of [var (B1-hat)]

= (122.4248)^(1/2)
= 11.0645743692285

Step-7 / Sum-xi2 8.45286446983715E-05

(Var (B2))1/2 0.00919394608959458

0.833232591327651

N-k 8
K-1 1

39.9710038291579

df MSS
N1 Sum-(yi-hat) / N1
N2 (Error)2 / N2
N-1 MSS of ESS / MSS of RSS

= (B2)2 x (Sum-xi2)
= (0.058126)^2 x (1085170.)
= 3666.46003989759

= 733.8239601024

= 8
= 1

df MSS
1 3666.46003989759 / 1
8 733.8239601024 / 8
N-1 MSS of ESS / MSS of RSS
 = MSS of ESS / MSS of RSS
( 3666.46003989759 / 1) / ( 733.8239601024
=
/8)
= 39.9710038291578

1,8
11.3
5.32
3.46

1 > 11.3 at the significant level of 1%, Which means model is good fit. We will
accept Hypothesis one.

1 > 5.32 at the significant level of 5%, Which means model is good fit. We will
accept Hypothesis one.

1 > 3.46 at the significant level of 10%, Which means model is good fit. We will
accept Hypothesis one.
 xi yi xi^2 yi^2
-430.4000 -30.6400 185244.1600 938.8096
-367.3000 -23.0400 134909.2900 530.8416
-302.2000 -28.0400 91324.8400 786.2416
-192.5000 -2.0400 37056.2500 4.1616
-103.3000 5.9600 10670.8900 35.5216
1.7000 12.7600 2.8900 162.8176
115.5000 4.7600 13340.2500 22.6576
243.9000 0.8600 59487.2100 0.7396
422.6000 20.9600 178590.7600 439.3216
612.0000 38.4600 374544.0000 1479.1716

0 0 1085170.54 4400.284

For B2 (its for sample, assume hat)

we need:
If use Small xi & yi
Sum-xi.yi 63077.21
Sum-xi 2
1085170.54
 B2 (Sum-xi.yi)/(Sum-xi2 )

Hence;
SRF:

Y-hat 24.35852+(0.058126(X))

Interpret:
slop = 0.058126 Indicate that if one $ Price increse then Qd will decrese by 0.058
Kgs

Intercept = 24.35852 Indicate that if Price is 0$ then Qd will be 24.35852 Kgs

 Error (Error)2
-5.6223367081086 31.610670059346
-1.690121451878 2.8565105220982
-10.474159277859 109.70801257795
9.1493591628464 83.710773090762
11.964471696218 143.14858296961
12.66118488012 160.30560256859
-1.9536154977078 3.8166135128843
-13.317063375679 177.34417695186
-3.604276271267 12.990807439618
2.8865568433143 8.3322104096844

0.0000 733.8239601024

Coefficient of correlation

Formula

Data
Sum-xi.yi 63077.21
sum-xi2 1085170.54
sum-yi2 4400.284

Calculation

Step-8 (Sum-xi2)(Sum-yi2)
Step-9 (Step-8)1/2
 r (Sum-xi.yi) / Step-9

OR,
Formula

Calculation
Step-10 n(Sum-Y2)
Step-11 (Sum-Y)2
Step-12 (Step-10)-(Step-11)
Step-13 (Step-3)-(Step-0)
Interpretation Step-14 (Step-12).(Step-13)
Step-15 (Step-14)1/2
It indicate that there is negative
relationship b/w Price and Qd, the
strength of relationship b/w Price and
Qd is .912815. [Its range is -1 to 1] r Step-4/Step-15

Coefficient of determination

Formula

Calculation
Interpretatuin Step-16 (Error)2 / (Sum-yi2)

It indicate the variation of 0.833232 in r2 1-(step-16)

the Qd that is predictable from the Direct formula (for verify answare, use direct sq of r)
Price. [Its range is 0 to 1] r2 (r)2

Significant testing

H0 : B2 = 0
H1 : B2 ≠ 0

tc = B2 / Se(B2)
 tc B2 / Se(B2) 6.32226255617068

By using Table
alpha 0.01 0.05
Calculate Manual:
talpha/2,n-k 0.0050 0.0250
8 3.355 2.306

Table PDF
just click to find Calculated t > t for table, 6.3222 > 3.355 at the significant level of 1%, Which
significant. It means Price has effect on Qd. We will accept Hypothesis one.
tα/2,df

Calculated t > t for table, 6.3222 > 2.306 at the significant level of 5%, Which
significant. It means Price has effect on Qd. We will accept Hypothesis one.

Calculated t > t for table, 6.3222 > 2.306 at the significant level of 10%, Which
significant. It means Price has effect on Qd. We will accept Hypothesis one.
 xi.yi
13187.4560
8462.5920
8473.6880
392.7000
-615.6680
21.6920
549.7800
209.7540
8857.6960
23537.5200

63077.21
 0.058126541106

Qd will decrese by 0.058126

Qd will be 24.35852 Kgs

4775058564.4334
69101.798561494
 0.912815748839

883791.8
839788.96
44002.84
10851705.4
477505856443.34
691017.98561494

0.912815748839

0.1667674086723

0.833232591328
sware, use direct sq of r)
0.833232591328
 0.10

0.0500
1.86

ficant level of 1%, Which is

accept Hypothesis one.

ficant level of 5%, Which is

accept Hypothesis one.

ficant level of 10%, Which is

accept Hypothesis one.
n y x1 x2 x1.x2
1 10 40 49 1960
2 20 63 47 2961
3 30 52 45 2340
4 40 17 43 731
5 50 55 41 2255
6 60 55 39 2145
7 75 50 37 1850
8 80 90 35 3150
9 90 91 33 3003
10 100 110 31 3410
10 555 623 400 23805

n Error Error^2
1 0.5071 0.2571
2 1.0210 1.0424
3 0.2688 0.0723
4 -1.3770 1.8960
5 -0.3045 0.0927
6 -0.6471 0.4187
7 3.8242 14.6246
8 -0.0289 0.0008
9 -0.3342 0.1117
10 0.0308 0.0009
Total 2.9602 18.5173
x1^2 x2^2 x1y x2y y^2
1600 2401 400 490 100
3969 2209 1260 940 400 Y-bar
2704 2025 1560 1350 900 X2-bar
289 1849 680 1720 1600 X3-bar
3025 1681 2750 2050 2500
3025 1521 3300 2340 3600
2500 1369 3750 2775 5625 Sum-x2y
8100 1225 7200 2800 6400 sum-x3y
8281 1089 8190 2970 8100 sum-x2x3
12100 961 11000 3100 10000
45593 16330 40090 20535 39225 sum-x2^2
sum-x3^2
sum-y^2
= 55.5
= 62.3
= 40

= 5513.5
= -1665
= -1115

= 6780.1
= 330
= 8422.5
 Unit Price Qd
Symbol $ Kgs
n X Y
1980 1973.3 161.8
1981 2200.2 199.1
1982 2347.3 205.5
1983 2522.4 167
1984 2810 235.7
1985 3002 206.2
1986 3187.6 196.5
1987 3363.1 168.4

8 21405.9 1540.2

For B2 (its for sample, assume hat)

we need:
If use Capital X & Y
n
Sum-X.Y
Sum-X
Sum-Y
Sum-X2
Step-0 (Sum-X)2

Formula:

Calculation

Step-1
 Step-2
Step-3

Step-4
Step-5

B2

For B1 (its for sample, assume hat)

We Need:
Calculated
Y-bar
B2
X-bar

Formula:

Calculation:

B1

For Error Term

Formula
Error =

Or
Error =
 Calculation

11
12
13
14
15
16
17
18

Standard Error

Data
Sum-X2
n
Sum-xi2
(Error)2
n-k

Formula

Calculation

Step -6
Step-7
 Var (B1-hat)

Formula
Se(B1-hat)

Se(B1-hat)

Formula

Var (B2)

Se (B2)

F Test
Ho : Model is not good fit
H1 : Model is good fit

Fc By Formula

R2 =
 Step-17 N2
Step-18 N1

Fc [R2/(1-R2)]x[N2/N1]

Fc By ANOVA Calulation

Sourcse SS
ESS Sum-(yi-hat)
RSS (Error)2
RTSS Sum-yi2

Sum-(yi-hat)

Sum-(yi-hat)

(Error)2
From Error Term

N2
N1
From Step-17&18

Putting Values:
Sourcse SS
ESS 111.677388881431
RSS 4344.35761111857
RTSS Sum-yi2

Fc

Fc
 Fa,N1,N2
1%
5%
10%

Table PDF
just click to find Calculated F < F for table, 0.1542 < 11.3 at the significant level of 1
will reject Hypothesis one
Fa,N1,N2

Calculated F < F for table, 0.1542 < 5.32 at the significant level of 5
will reject Hypothesis one

Calculated F < F for table, 0.1542 < 3.46 at the significant level of 1
will reject Hypothesis one
 X-bar 2675.7375
Y-bar 192.525

X^2 Y^2 XY
3893912.89 26179.24 319279.9400
4840880.04 39640.81 438059.8200
5509817.29 42230.25 482370.1500
6362501.76 27889 421240.8000
7896100 55554.49 662317.0000
9012004 42518.44 619012.4000
10160793.76 38612.25 626363.4000
11310441.61 28358.56 566346.0400

58986451.35 300983.04 4134989.55

If use Capital X & Y

8
4134989.55
21405.9
1540.2
58986451.35
458212554.81

n (sum-X.Y) 33079916.4
 [(Sum-X)(Sum-Y)] 32969367.18
n(Sum-X2) 471891610.8

[(Step-1)-(Step-2)] 110549.220000003
[(Step-3)-(Sum-x)2] 13679055.9900001

Step-4/Step-5 0.0080816410197325

Calculated
192.525
0.0080816410197325
2675.7375

(Y-bar)-[B2(X-bar)] 170.900650061964

Y - (Y-hat)

Y - [170.9006+(0.008081(X))]
 161.8 - [ 170.9006+(0.008081( 1973.3 ))]
199.1 - [ 170.9006+(0.008081( 2200.2 ))]
205.5 - [ 170.9006+(0.008081( 2347.3 ))]
167 - [ 170.9006+(0.008081( 2522.4 ))]
235.7 - [ 170.9006+(0.008081( 2810 ))]
206.2 - [ 170.9006+(0.008081( 3002 ))]
196.5 - [ 170.9006+(0.008081( 3187.6 ))]
168.4 - [ 170.9006+(0.008081( 3363.1 ))]

Data
58986451.35
8
1709881.99875
4344.35761111857
6

n(sum-xi2) 13679055.99
(Error)2 / n-k 724.059601853095
 [(sum-X2)/Step-6] x
3122.2700243665
(Step-7)

= Sq root of [var (B1-hat)]

= (3122.270)^(1/2)
= 55.8772764580245

Step-7 / Sum-xi2 0.000423455888992582

(Var (B2))1/2 0.0205780438572908

0.0250620537947815
 N-k 6
K-1 1

0.154237839807126

df MSS
N1 Sum-(yi-hat) / N1
N2 (Error)2 / N2
N-1 MSS of ESS / MSS of RSS

= (B2)2 x (Sum-xi2)
= (0.008081)^2 x (1709881.)
= 111.677388881431

= 4344.35761111857

= 6
= 1

df MSS
1 111.677388881431 / 1
6 4344.35761111857 / 6
N-1 MSS of ESS / MSS of RSS

= MSS of ESS / MSS of RSS

( 111.677388881431 / 1) /
=
( 4344.35761111857 / 6 )
= 0.154237839807128
 1,6
11.3
5.32
3.46

2 < 11.3 at the significant level of 1%, Which means model is not good fit. We
will reject Hypothesis one.

2 < 5.32 at the significant level of 5%, Which means model is not good fit. We
will reject Hypothesis one.

2 < 3.46 at the significant level of 10%, Which means model is not good fit. We
will reject Hypothesis one.
 xi yi xi^2 yi^2
-702.4375 -30.7250 493418.4414 944.0256
-475.5375 6.5750 226135.9139 43.2306
-328.4375 12.9750 107871.1914 168.3506
-153.3375 -25.5250 23512.3889 651.5256
134.2625 43.1750 18026.4189 1864.0806
326.2625 13.6750 106447.2189 187.0056
511.8625 3.9750 262003.2189 15.8006
687.3625 -24.1250 472467.2064 582.0156

0 0 1709881.99875 4456.035

For B2 (its for sample, assume hat)

we need:
If use Small xi & yi
Sum-xi.yi 13818.6525
Sum-xi 2
1709881.99875

B2 (Sum-xi.yi)/(Sum-xi2 )
 Hence;
SRF:

Y-hat 170.9006+(0.008081(X))

Interpret:
slop = 0.008081 Indicate that if one $ Price increse then Qd will decrese by 0.008
Kgs

Intercept = 170.9006 Indicate that if Price is 0$ then Qd will be 170.9006 Kgs

 Error (Error)2
-25.048152286202 627.40993295275
10.418123366421 108.53729447797
15.629313972418 244.27545524843
-24.285781370137 589.79917675808
42.089938672588 1771.5629374622
11.0382635968 121.84326323243
-0.1616889764628 0.0261433251096
-29.680016975426 880.90340766157

0.0000 4344.3576111186

Coefficient of correlation

Formula

Data
Sum-xi.yi 13818.6525
sum-xi2 1709881.99875
sum-yi2 4456.035

Calculation

Step-8 (Sum-xi2)(Sum-yi2)
Step-9 (Step-8)1/2

r (Sum-xi.yi) / Step-9

OR,
Formula
 Calculation
Step-10 n(Sum-Y2)
Step-11 (Sum-Y)2
Step-12 (Step-10)-(Step-11)
Step-13 (Step-3)-(Step-0)
Interpretation Step-14 (Step-12).(Step-13)
Step-15 (Step-14)1/2
It indicate that there is negative
relationship b/w Price and Qd, the
strength of relationship b/w Price and
Qd is .158309. [Its range is -1 to 1] r Step-4/Step-15

Coefficient of determination

Formula

Calculation
Interpretatuin Step-16 (Error)2 / (Sum-yi2)

It indicate the variation of 0.025062 in r2 1-(step-16)

the Qd that is predictable from the Direct formula (for verify answare, use direct sq of r)
Price. [Its range is 0 to 1] r2 (r)2

Significant testing

H0 : B2 = 0
H1 : B2 ≠ 0

tc = B2 / Se(B2)

tc B2 / Se(B2) 0.392731256468247

By using Table
alpha 0.01 0.05
Calculate Manual:
talpha/2,n-k 0.0050 0.0250
6 3.355 2.306
 Table PDF
just click to find Calculated t < t for table, 0.3927 < 3.355 at the significant level of 1%, Which
insignificant. It means Price has no effect on Qd. We will reject Hypothesis one
tα/2,df

Calculated t < t for table, 0.3927 < 2.306 at the significant level of 5%, Which
insignificant. It means Price has no effect on Qd. We will reject Hypothesis one

Calculated t < t for table, 0.3927 < 2.306 at the significant level of 10%, Which
insignificant. It means Price has no effect on Qd. We will reject Hypothesis one
 xi.yi
21582.3922
-3126.6591
-4261.4766
3913.9397
5796.7834
4461.6397
2034.6534
-16582.6203

13818.6525

0.00808164102
Qd will decrese by 0.008081

Qd will be 170.9006 Kgs

 7619294032.3
87288.567592211

0.158309992719
 2407864.32
2372216.04
35648.28
13679055.99
487634818067.2
698308.54073769

0.158309992719

0.9749379462052

0.025062053795
sware, use direct sq of r)
0.025062053795

0.10

0.0500
1.86
ficant level of 1%, Which is
will reject Hypothesis one.

ficant level of 5%, Which is

will reject Hypothesis one.

ficant level of 10%, Which is

will reject Hypothesis one.
 Unit Price Qd
Symbol $ Kgs
n X Y
1988 3640.8 189.1
1989 3894.5 187.8
1990 4166.8 208.7
1991 4343.7 246.4
1992 4613.7 272.6
1993 4790.2 214.4
1994 5021.7 189.4
1995 5320.8 249.3

8 35792.2 1757.7

For B2 (its for sample, assume hat)

we need:
If use Capital X & Y
n
Sum-X.Y
Sum-X
Sum-Y
Sum-X2
Step-0 (Sum-X)2

Formula:

Calculation

Step-1
 Step-2
Step-3

Step-4
Step-5

B2

For B1 (its for sample, assume hat)

We Need:
Calculated
Y-bar
B2
X-bar

Formula:

Calculation:

B1

For Error Term

Formula
Error =

Or
Error =
 Calculation

19
20
21
22
23
24
25
26

Standard Error

Data
Sum-X2
n
Sum-xi2
(Error)2
n-k

Formula

Calculation

Step -6
Step-7
 Var (B1-hat)

Formula
Se(B1-hat)

Se(B1-hat)

Formula

Var (B2)

Se (B2)

F Test
Ho : Model is not good fit
H1 : Model is good fit

Fc By Formula

R2 =
 Step-17 N2
Step-18 N1

Fc [R2/(1-R2)]x[N2/N1]

Fc By ANOVA Calulation

Sourcse SS
ESS Sum-(yi-hat)
RSS (Error)2
RTSS Sum-yi2

Sum-(yi-hat)

Sum-(yi-hat)

(Error)2
From Error Term

N2
N1
From Step-17&18

Putting Values:
Sourcse SS
ESS 1480.15827290705
RSS 5928.45047709294
RTSS Sum-yi2

Fc

Fc
 Fa,N1,N2
1%
5%
10%

Table PDF
just click to find Calculated F < F for table, 1.4980 < 11.3 at the significant level of 1
will reject Hypothesis one
Fa,N1,N2

Calculated F < F for table, 1.4980 < 5.32 at the significant level of 5
will reject Hypothesis one

Calculated F < F for table, 1.4980 < 3.46 at the significant level of 1
will reject Hypothesis one
 X-bar 4474.025
Y-bar 219.7125

X^2 Y^2 XY
13255424.64 35758.81 688475.2800
15167130.25 35268.84 731387.1000
17362222.24 43555.69 869611.1600
18867729.69 60712.96 1070287.6800
21286227.69 74310.76 1257694.6200
22946016.04 45967.36 1027018.8800
25217470.89 35872.36 951109.9800
28310912.64 62150.49 1326475.4400

162413134.08 393597.27 7922060.14

If use Capital X & Y

8
7922060.14
35792.2
1757.7
162413134.08
1281081580.84

n (sum-X.Y) 63376481.12
 [(Sum-X)(Sum-Y)] 62911949.94
n(Sum-X2) 1299305072.64

[(Step-1)-(Step-2)] 464531.179999985
[(Step-3)-(Sum-x)2] 18223491.7999995

Step-4/Step-5 0.0254907887631062

Calculated
219.7125
0.0254907887631062
4474.025

(Y-bar)-[B2(X-bar)] 105.666073804144

Y - (Y-hat)

Y - [105.6660+(0.025490(X))]
 189.1 - [ 105.6660+(0.025490( 3640.8 ))]
187.8 - [ 105.6660+(0.025490( 3894.5 ))]
208.7 - [ 105.6660+(0.025490( 4166.8 ))]
246.4 - [ 105.6660+(0.025490( 4343.7 ))]
272.6 - [ 105.6660+(0.025490( 4613.7 ))]
214.4 - [ 105.6660+(0.025490( 4790.2 ))]
189.4 - [ 105.6660+(0.025490( 5021.7 ))]
249.3 - [ 105.6660+(0.025490( 5320.8 ))]

Data
162413134.08
8
2277936.475
5928.45047709294
6

n(sum-xi2) 18223491.8
(Error)2 / n-k 988.07507951549
[(sum-X2)/Step-6] x
8806.01654895007
(Step-7)

= Sq root of [var (B1-hat)]

= (8806.016)^(1/2)
= 93.8403780307287

Step-7 / Sum-xi2 0.000433758838474848

(Var (B2))1/2 0.020826877789886

0.199788964818403
 N-k 6
K-1 1

1.49802206693936

df MSS
N1 Sum-(yi-hat) / N1
N2 (Error)2 / N2
N-1 MSS of ESS / MSS of RSS

= (B2)2 x (Sum-xi2)
= (0.025490)^2 x (2277936.)
= 1480.15827290705

= 5928.45047709294

= 6
= 1

df MSS
1 1480.15827290705 / 1
6 5928.45047709294 / 6
N-1 MSS of ESS / MSS of RSS

= MSS of ESS / MSS of RSS

( 1480.15827290705 / 1) /
=
( 5928.45047709294 / 6 )
= 1.49802206693935
 1,6
11.3
5.32
3.46

0 < 11.3 at the significant level of 1%, Which means model is not good fit. We
will reject Hypothesis one.

0 < 5.32 at the significant level of 5%, Which means model is not good fit. We
will reject Hypothesis one.

0 < 3.46 at the significant level of 10%, Which means model is not good fit. We
will reject Hypothesis one.
 xi yi xi^2 yi^2
-833.2250 -30.6125 694263.9006 937.1252
-579.5250 -31.9125 335849.2256 1018.4077
-307.2250 -11.0125 94387.2006 121.2752
-130.3250 26.6875 16984.6056 712.2227
139.6750 52.8875 19509.1056 2797.0877
316.1750 -5.3125 99966.6306 28.2227
547.6750 -30.3125 299947.9056 918.8477
846.7750 29.5875 717027.9006 875.4202

-4.547473509E-12 0 2277936.475 7408.60875

For B2 (its for sample, assume hat)

we need:
If use Small xi & yi
Sum-xi.yi 58066.3975
Sum-xi 2
2277936.475

B2 (Sum-xi.yi)/(Sum-xi2 )
 Hence;
SRF:

Y-hat 105.6660+(0.025490(X))

Interpret:
slop = 0.025490 Indicate that if one $ Price increse then Qd will decrese by 0.025
Kgs

Intercept = 105.6660 Indicate that if Price is 0$ then Qd will be 105.6660 Kgs

 Error (Error)2
-9.3729375328608 87.851957994911
-17.139950642061 293.77790801228
-3.1810924222547 10.119348998926
30.009587045552 900.57531464455
49.327074079513 2433.1602372458
-13.372050137175 178.81172487112
-44.273167735834 1960.1133813653
8.0025373451207 64.040603960052

0.0000 5928.4504770929

Coefficient of correlation

Formula

Data
Sum-xi.yi 58066.3975
sum-xi2 2277936.475
sum-yi2 7408.60875

Calculation

Step-8 (Sum-xi2)(Sum-yi2)
Step-9 (Step-8)1/2

r (Sum-xi.yi) / Step-9

OR,
Formula
 Calculation
Step-10 n(Sum-Y2)
Step-11 (Sum-Y)2
Step-12 (Step-10)-(Step-11)
Step-13 (Step-3)-(Step-0)
Interpretation Step-14 (Step-12).(Step-13)
Step-15 (Step-14)1/2
It indicate that there is negative
relationship b/w Price and Qd, the
strength of relationship b/w Price and
Qd is .446977. [Its range is -1 to 1] r Step-4/Step-15

Coefficient of determination

Formula

Calculation
Interpretatuin Step-16 (Error)2 / (Sum-yi2)

It indicate the variation of 0.199788 in r2 1-(step-16)

the Qd that is predictable from the Direct formula (for verify answare, use direct sq of r)
Price. [Its range is 0 to 1] r2 (r)2

Significant testing

H0 : B2 = 0
H1 : B2 ≠ 0

tc = B2 / Se(B2)

tc B2 / Se(B2) 1.22393711723248

By using Table
alpha 0.01 0.05
Calculate Manual:
talpha/2,n-k 0.0050 0.0250
6 3.355 2.306
 Table PDF
just click to find Calculated t < t for table, 1.2239 < 3.355 at the significant level of 1%, Which
insignificant. It means Price has no effect on Qd. We will reject Hypothesis one
tα/2,df

Calculated t < t for table, 1.2239 < 2.306 at the significant level of 5%, Which
insignificant. It means Price has no effect on Qd. We will reject Hypothesis one

Calculated t < t for table, 1.2239 < 2.306 at the significant level of 10%, Which
insignificant. It means Price has no effect on Qd. We will reject Hypothesis one
 xi.yi
25507.1003
18494.0916
3383.3153
-3478.0484
7387.0616
-1679.6797
-16601.3984
25053.9553

58066.3975

0.025490788763
Qd will decrese by 0.025490

Qd will be 105.6660 Kgs

16876340100.629
129908.96851499

0.446977588721
 3148778.16
3089509.29
59268.87
18223491.799999
1080085766440.2
1039271.7481199

0.446977588721

0.8002110351816

0.199788964818
sware, use direct sq of r)
0.199788964818

0.10

0.0500
1.86
ficant level of 1%, Which is
will reject Hypothesis one.

ficant level of 5%, Which is

will reject Hypothesis one.

ficant level of 10%, Which is

will reject Hypothesis one.
 Working Note
n X Y X^2 Y^2
1988 3640.8 189.1 13255424.64 35758.81
1989 3894.5 187.8 15167130.25 35268.84
1990 4166.8 208.7 17362222.24 43555.69
1991 4343.7 246.4 18867729.69 60712.96
1992 4613.7 272.6 21286227.69 74310.76
1993 4790.2 214.4 22946016.04 45967.36
1994 5021.7 189.4 25217470.89 35872.36
1995 5320.8 249.3 28310912.64 62150.49

8 35792.2 1757.7 162413134.08 393597.27

Working Note
n X Y X^2 Y^2
1980 1973.3 161.8 3893912.89 26179.24
1981 2200.2 199.1 4840880.04 39640.81
1982 2347.3 205.5 5509817.29 42230.25
1983 2522.4 167 6362501.76 27889
1984 2810 235.7 7896100 55554.49
1985 3002 206.2 9012004 42518.44
1986 3187.6 196.5 10160793.76 38612.25
1987 3363.1 168.4 11310441.61 28358.56

8 21405.9 1540.2 58986451.35 300983.04

Working Note # 4
XY xi yi xi^2 yi^2
688475.2800 3640.8000 189.1000 13255424.6400 35758.8100
731387.1000 3894.5000 187.8000 15167130.2500 35268.8400
869611.1600 4166.8000 208.7000 17362222.2400 43555.6900
1070287.6800 4343.7000 246.4000 18867729.6900 60712.9600
1257694.6200 4613.7000 272.6000 21286227.6900 74310.7600
1027018.8800 4790.2000 214.4000 22946016.0400 45967.3600
951109.9800 5021.7000 189.4000 25217470.8900 35872.3600
1326475.4400 5320.8000 249.3000 28310912.6400 62150.4900

7922060.14 35792.2 1757.7 162413134.08 393597.27

Working Note # 3
XY xi yi xi^2 yi^2
319279.9400 1973.3000 161.8000 3893912.8900 26179.2400
438059.8200 2200.2000 199.1000 4840880.0400 39640.8100
482370.1500 2347.3000 205.5000 5509817.2900 42230.2500
421240.8000 2522.4000 167.0000 6362501.7600 27889.0000
662317.0000 2810.0000 235.7000 7896100.0000 55554.4900
619012.4000 3002.0000 206.2000 9012004.0000 42518.4400
626363.4000 3187.6000 196.5000 10160793.7600 38612.2500
566346.0400 3363.1000 168.4000 11310441.6100 28358.5600

4134989.55 21405.9 1540.2 58986451.35 300983.04

 xi.yi Error (Error)2
688475.2800 -9.3729375328608 87.85195799491
731387.1000 -17.139950642061 293.7779080123
869611.1600 -3.1810924222547 10.11934899893
1070287.6800 30.009587045552 900.5753146446
1257694.6200 49.327074079513 2433.160237246
1027018.8800 -13.372050137175 178.8117248711
951109.9800 -44.273167735834 1960.113381365
1326475.4400 8.0025373451207 64.04060396005

7922060.14 0.0000 5928.450477093

xi.yi Error (Error)2

319279.9400 -25.048152286202 627.4099329527
438059.8200 10.418123366421 108.537294478
482370.1500 15.629313972418 244.2754552484
421240.8000 -24.285781370137 589.7991767581
662317.0000 42.089938672588 1771.562937462
619012.4000 11.0382635968 121.8432632324
626363.4000 -0.1616889764628 0.02614332511
566346.0400 -29.680016975426 880.9034076616

4134989.55 0.0000 4344.357611119

 n X Y X^2
1970 727.1 61 528674.41
1971 790.2 68.6 624416.04
1972 855.3 63.6 731538.09
1973 965 89.6 931225
1974 1054.2 97.6 1111337.64
1975 1159.2 104.4 1343744.64
1976 1273 96.4 1620529
1977 1401.4 92.5 1963921.96
1978 1580.1 112.6 2496716.01
1979 1769.5 130.1 3131130.25

10 11575 916.4 14483233.04

n X Y X^2
1970 727.1 61 528674.41
1971 790.2 68.6 624416.04
1972 855.3 63.6 731538.09
1973 965 89.6 931225
1974 1054.2 97.6 1111337.64
1975 1159.2 104.4 1343744.64
1976 1273 96.4 1620529
1977 1401.4 92.5 1963921.96
1978 1580.1 112.6 2496716.01
1979 1769.5 130.1 3131130.25
1980 1973.3 161.8 3893912.89
1981 2200.2 199.1 4840880.04
1982 2347.3 205.5 5509817.29
1983 2522.4 167 6362501.76
1984 2810 235.7 7896100
1985 3002 206.2 9012004
1986 3187.6 196.5 10160793.76
1987 3363.1 168.4 11310441.61
1988 3640.8 189.1 13255424.64
1989 3894.5 187.8 15167130.25
1990 4166.8 208.7 17362222.24
1991 4343.7 246.4 18867729.69
1992 4613.7 272.6 21286227.69
1993 4790.2 214.4 22946016.04
1994 5021.7 189.4 25217470.89
1995 5320.8 249.3 28310912.64

26 68773.1 4214.3 235882818.47

 Working Note # 2
Y^2 XY xi yi xi^2
3721 44353.1000 727.1000 61.0000 528674.4100
4705.96 54207.7200 790.2000 68.6000 624416.0400
4044.96 54397.0800 855.3000 63.6000 731538.0900
8028.16 86464.0000 965.0000 89.6000 931225.0000
9525.76 102889.9200 1054.2000 97.6000 1111337.6400
10899.36 121020.4800 1159.2000 104.4000 1343744.6400
9292.96 122717.2000 1273.0000 96.4000 1620529.0000
8556.25 129629.5000 1401.4000 92.5000 1963921.9600
12678.76 177919.2600 1580.1000 112.6000 2496716.0100
16926.01 230211.9500 1769.5000 130.1000 3131130.2500

88379.18 1123810.21 11575 916.4 14483233.04

Working Note # 1
Y^2 XY xi yi xi^2
3721 44353.1000 727.1000 61.0000 528674.4100
4705.96 54207.7200 790.2000 68.6000 624416.0400
4044.96 54397.0800 855.3000 63.6000 731538.0900
8028.16 86464.0000 965.0000 89.6000 931225.0000
9525.76 102889.9200 1054.2000 97.6000 1111337.6400
10899.36 121020.4800 1159.2000 104.4000 1343744.6400
9292.96 122717.2000 1273.0000 96.4000 1620529.0000
8556.25 129629.5000 1401.4000 92.5000 1963921.9600
12678.76 177919.2600 1580.1000 112.6000 2496716.0100
16926.01 230211.9500 1769.5000 130.1000 3131130.2500
26179.24 319279.9400 1973.3000 161.8000 3893912.8900
39640.81 438059.8200 2200.2000 199.1000 4840880.0400
42230.25 482370.1500 2347.3000 205.5000 5509817.2900
27889 421240.8000 2522.4000 167.0000 6362501.7600
55554.49 662317.0000 2810.0000 235.7000 7896100.0000
42518.44 619012.4000 3002.0000 206.2000 9012004.0000
38612.25 626363.4000 3187.6000 196.5000 10160793.7600
28358.56 566346.0400 3363.1000 168.4000 11310441.6100
35758.81 688475.2800 3640.8000 189.1000 13255424.6400
35268.84 731387.1000 3894.5000 187.8000 15167130.2500
43555.69 869611.1600 4166.8000 208.7000 17362222.2400
60712.96 1070287.6800 4343.7000 246.4000 18867729.6900
74310.76 1257694.6200 4613.7000 272.6000 21286227.6900
45967.36 1027018.8800 4790.2000 214.4000 22946016.0400
35872.36 951109.9800 5021.7000 189.4000 25217470.8900
62150.49 1326475.4400 5320.8000 249.3000 28310912.6400

782959.49 13180859.9 68773.1 4214.3 235882818.47

 yi^2 xi.yi Error (Error)2
3721.0000 44353.1000 -5.6223367081086 31.61067005935
4705.9600 54207.7200 -1.690121451878 2.856510522098
4044.9600 54397.0800 -10.474159277859 109.708012578
8028.1600 86464.0000 9.1493591628464 83.71077309076
9525.7600 102889.9200 11.964471696218 143.1485829696
10899.3600 121020.4800 12.66118488012 160.3056025686
9292.9600 122717.2000 -1.9536154977078 3.816613512884
8556.2500 129629.5000 -13.317063375679 177.3441769519
12678.7600 177919.2600 -3.604276271267 12.99080743962
16926.0100 230211.9500 2.8865568433143 8.332210409684

88379.18 1123810.21 0.0000 733.8239601024

yi^2 xi.yi Error (Error)2

3721.0000 44353.1000 -28.819166318904 830.5443473167
4705.9600 54207.7200 -23.596719398247 556.8051663596
4044.9600 54397.0800 -31.04963073684 964.0795688941
8028.1600 86464.0000 -9.1830312567117 84.32806306174
9525.7600 102889.9200 -4.5440096192692 20.64802342001
10899.3600 121020.4800 -1.700318229903 2.89108208294
9292.9600 122717.2000 -13.988203181238 195.6698282396
8556.2500 129629.5000 -22.726203425098 516.4803221189
12678.7600 177919.2600 -9.3594638891007 87.59956429138
16926.0100 230211.9500 1.0041089599084 1.008234803368
26179.2400 319279.9400 25.025102342316 626.2557472434
39640.8100 438059.8200 53.775707830385 2891.826752659
42230.2500 482370.1500 54.633107862535 2984.776474719
27889.0000 421240.8000 9.5354922651828 90.92561273936
55554.4900 662317.0000 67.398974585009 4542.621775111
42518.4400 619012.4000 30.664581696993 940.3165706515
38612.2500 626363.4000 13.971335238577 195.1982083487
28358.5600 566346.0400 -20.741352010625 430.2036832287
35758.8100 688475.2800 -10.504846307511 110.3517959444
35268.8400 731387.1000 -21.364041493395 456.4222689315
43555.6900 869611.1600 -10.724068490305 115.0056449848
60712.9600 1070287.6800 20.310493479018 412.5161453612
74310.7600 1257694.6200 36.337128480245 1320.38690619
45967.3600 1027018.8800 -28.513237898582 813.0047354611
35872.3600 951109.9800 -62.235956406789 3873.314269868
62150.4900 1326475.4400 -13.605784077652 185.1173603677

782959.49 13180859.9 -143.9626 23248.2981524

 n X Y X^2 Y^2 XY xi yi
1970 727.1 61 528674.4 3721 ### 727.1000 Err:522
1971 790.2 68.6 624416 4705.96 ### Err:522 Err:522
1972 855.3 63.6 731538.1 4044.96 ### Err:522 Err:522
1973 965 89.6 931225 8028.16 ### Err:522 Err:522
1974 1054.2 97.6 1111338 9525.76 ### Err:522 Err:522
1975 1159.2 104.4 1343745 10899.36 ### Err:522 Err:522
1976 1273 96.4 1620529 9292.96 ### Err:522 Err:522
1977 1401.4 92.5 1963922 8556.25 ### Err:522 Err:522
1978 1580.1 112.6 2496716 12678.76 ### Err:522 Err:522
1979 1769.5 130.1 3131130 16926.01 ### Err:522 Err:522
1980 1973.3 161.8 3893913 26179.24 ### Err:522 Err:522
1981 2200.2 199.1 4840880 39640.81 ### Err:522 Err:522
1982 2347.3 205.5 5509817 42230.25 ### Err:522 Err:522
1983 2522.4 167 6362502 27889 ### Err:522 Err:522
1984 2810 235.7 7896100 55554.49 ### Err:522 Err:522
1985 3002 206.2 9012004 42518.44 ### Err:522 Err:522
1986 3187.6 196.5 10160794 38612.25 ### Err:522 Err:522
1987 3363.1 168.4 11310442 28358.56 ### Err:522 Err:522
1988 3640.8 189.1 13255425 35758.81 ### Err:522 Err:522
1989 3894.5 187.8 15167130 35268.84 ### Err:522 Err:522
1990 4166.8 208.7 17362222 43555.69 ### Err:522 Err:522
1991 4343.7 246.4 18867730 60712.96 ### Err:522 Err:522
1992 4613.7 272.6 21286228 74310.76 ### Err:522 Err:522
1993 4790.2 214.4 22946016 45967.36 ### Err:522 Err:522
1994 5021.7 189.4 25217471 35872.36 ### Err:522 Err:522
1995 5320.8 249.3 28310913 62150.49 ### Err:522 Err:522

26 68773.1 4214.3 2.36E+08 782959.5 13180860 Err:522 Err:522

 xi^2 yi^2 xi.yi Error (Error)2
### Err:522 Err:522 -28.81917 830.5443
Err:522 Err:522 Err:522 -23.59672 556.8052
Err:522 Err:522 Err:522 -31.04963 964.0796
Err:522 Err:522 Err:522 -9.183031 84.32806
Err:522 Err:522 Err:522 -4.54401 20.64802
Err:522 Err:522 Err:522 -1.700318 2.891082
Err:522 Err:522 Err:522 -13.9882 195.6698
Err:522 Err:522 Err:522 -22.7262 516.4803
Err:522 Err:522 Err:522 -9.359464 87.59956
Err:522 Err:522 Err:522 1.004109 1.008235
Err:522 Err:522 Err:522 25.0251 626.2557
Err:522 Err:522 Err:522 53.77571 2891.827
Err:522 Err:522 Err:522 54.63311 2984.776
Err:522 Err:522 Err:522 9.535492 90.92561
Err:522 Err:522 Err:522 67.39897 4542.622
Err:522 Err:522 Err:522 30.66458 940.3166
Err:522 Err:522 Err:522 13.97134 195.1982
Err:522 Err:522 Err:522 -20.74135 430.2037
Err:522 Err:522 Err:522 -10.50485 110.3518
Err:522 Err:522 Err:522 -21.36404 456.4223
Err:522 Err:522 Err:522 -10.72407 115.0056
Err:522 Err:522 Err:522 20.31049 412.5161
Err:522 Err:522 Err:522 36.33713 1320.387
Err:522 Err:522 Err:522 -28.51324 813.0047
Err:522 Err:522 Err:522 -62.23596 3873.314
Err:522 Err:522 Err:522 -13.60578 185.1174

Err:522 Err:522 Err:522 -143.9626 23248.3

 Working Note # 1
n X Y X^2 Y^2 XY
1970 727.1 61 528674.4 3721 44353.1000
1971 790.2 68.6 624416 4705.96 54207.7200
1972 855.3 63.6 731538.1 4044.96 54397.0800
1973 965 89.6 931225 8028.16 86464.0000
1974 1054.2 97.6 1111338 9525.76 102889.9200
1975 1159.2 104.4 1343745 10899.36 121020.4800
1976 1273 96.4 1620529 9292.96 122717.2000
1977 1401.4 92.5 1963922 8556.25 129629.5000
1978 1580.1 112.6 2496716 12678.76 177919.2600
1979 1769.5 130.1 3131130 16926.01 230211.9500
1980 1973.3 161.8 3893913 26179.24 319279.9400
1981 2200.2 199.1 4840880 39640.81 438059.8200
1982 2347.3 205.5 5509817 42230.25 482370.1500
1983 2522.4 167 6362502 27889 421240.8000
1984 2810 235.7 7896100 55554.49 662317.0000
1985 3002 206.2 9012004 42518.44 619012.4000
1986 3187.6 196.5 10160794 38612.25 626363.4000
1987 3363.1 168.4 11310442 28358.56 566346.0400
1988 3640.8 189.1 13255425 35758.81 688475.2800
1989 3894.5 187.8 15167130 35268.84 731387.1000
1990 4166.8 208.7 17362222 43555.69 869611.1600
1991 4343.7 246.4 18867730 60712.96 1070287.6800
1992 4613.7 272.6 21286228 74310.76 1257694.6200
1993 4790.2 214.4 22946016 45967.36 1027018.8800
1994 5021.7 189.4 25217471 35872.36 951109.9800
1995 5320.8 249.3 28310913 62150.49 1326475.4400

26 68773.1 4214.3 2.36E+08 782959.5 13180859.9

g Note # 1
xi yi xi^2 yi^2 xi.yi Error
727.1000 61.0000 528674.4100 3721.0000 44353.1000 -28.819166
790.2000 68.6000 624416.0400 4705.9600 54207.7200 -23.596719
855.3000 63.6000 731538.0900 4044.9600 54397.0800 -31.049631
965.0000 89.6000 931225.0000 8028.1600 86464.0000 -9.1830313
1054.2000 97.6000 1111337.6400 9525.7600 102889.9200 -4.5440096
1159.2000 104.4000 1343744.6400 10899.3600 121020.4800 -1.7003182
1273.0000 96.4000 1620529.0000 9292.9600 122717.2000 -13.988203
1401.4000 92.5000 1963921.9600 8556.2500 129629.5000 -22.726203
1580.1000 112.6000 2496716.0100 12678.7600 177919.2600 -9.3594639
1769.5000 130.1000 3131130.2500 16926.0100 230211.9500 1.004109
1973.3000 161.8000 3893912.8900 26179.2400 319279.9400 25.025102
2200.2000 199.1000 4840880.0400 39640.8100 438059.8200 53.775708
2347.3000 205.5000 5509817.2900 42230.2500 482370.1500 54.633108
2522.4000 167.0000 6362501.7600 27889.0000 421240.8000 9.5354923
2810.0000 235.7000 7896100.0000 55554.4900 662317.0000 67.398975
3002.0000 206.2000 9012004.0000 42518.4400 619012.4000 30.664582
3187.6000 196.5000 10160793.7600 38612.2500 626363.4000 13.971335
3363.1000 168.4000 11310441.6100 28358.5600 566346.0400 -20.741352
3640.8000 189.1000 13255424.6400 35758.8100 688475.2800 -10.504846
3894.5000 187.8000 15167130.2500 35268.8400 731387.1000 -21.364041
4166.8000 208.7000 17362222.2400 43555.6900 869611.1600 -10.724068
4343.7000 246.4000 18867729.6900 60712.9600 1070287.6800 20.310493
4613.7000 272.6000 21286227.6900 74310.7600 1257694.6200 36.337128
4790.2000 214.4000 22946016.0400 45967.3600 1027018.8800 -28.513238
5021.7000 189.4000 25217470.8900 35872.3600 951109.9800 -62.235956
5320.8000 249.3000 28310912.6400 62150.4900 1326475.4400 -13.605784

68773.1 4214.3 235882818.47 782959.49 13180859.9 -143.9626

 (Error)2
830.5443
556.8052
964.0796
84.32806
20.64802
2.891082
195.6698
516.4803
87.59956
1.008235
626.2557
2891.827
2984.776
90.92561
4542.622
940.3166
195.1982
430.2037
110.3518
456.4223
115.0056
412.5161
1320.387
813.0047
3873.314
185.1174

23248.3
 n
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995

26
n X Y X^2 Y^2 XY xi
1970 727.1 61 528674.4 3721 44353.1 727.1
1971 790.2 68.6 624416 4705.96 54207.72 790.2
1972 855.3 63.6 731538.1 4044.96 54397.08 855.3
1973 965 89.6 931225 8028.16 86464 965
1974 1054.2 97.6 1111338 9525.76 102889.9 1054.2
1975 1159.2 104.4 1343745 10899.36 121020.5 1159.2
1976 1273 96.4 1620529 9292.96 122717.2 1273
1977 1401.4 92.5 1963922 8556.25 129629.5 1401.4
1978 1580.1 112.6 2496716 12678.76 177919.3 1580.1
1979 1769.5 130.1 3131130 16926.01 230211.9 1769.5
1980 1973.3 161.8 3893913 26179.24 319279.9 1973.3
1981 2200.2 199.1 4840880 39640.81 438059.8 2200.2
1982 2347.3 205.5 5509817 42230.25 482370.2 2347.3
1983 2522.4 167 6362502 27889 421240.8 2522.4
1984 2810 235.7 7896100 55554.49 662317 2810
1985 3002 206.2 9012004 42518.44 619012.4 3002
1986 3187.6 196.5 10160794 38612.25 626363.4 3187.6
1987 3363.1 168.4 11310442 28358.56 566346 3363.1
1988 3640.8 189.1 13255425 35758.81 688475.3 3640.8
1989 3894.5 187.8 15167130 35268.84 731387.1 3894.5
1990 4166.8 208.7 17362222 43555.69 869611.2 4166.8
1991 4343.7 246.4 18867730 60712.96 1070288 4343.7
1992 4613.7 272.6 21286228 74310.76 1257695 4613.7
1993 4790.2 214.4 22946016 45967.36 1027019 4790.2
1994 5021.7 189.4 25217471 35872.36 951110 5021.7
1995 5320.8 249.3 28310913 62150.49 1326475 5320.8

26 68773.1 4214.3 2.36E+08 782959.5 13180860 68773.1

xi^2 yi^2 xi.yi Error (Error)2
528674.4 3721 44353.1 -28.81917 830.5443
624416 4705.96 54207.72 -23.59672 556.8052
731538.1 4044.96 54397.08 -31.04963 964.0796
931225 8028.16 86464 -9.183031 84.32806
1111338 9525.76 102889.9 -4.54401 20.64802
1343745 10899.36 121020.5 -1.700318 2.891082
1620529 9292.96 122717.2 -13.9882 195.6698
1963922 8556.25 129629.5 -22.7262 516.4803
2496716 12678.76 177919.3 -9.359464 87.59956
3131130 16926.01 230211.9 1.004109 1.008235
3893913 26179.24 319279.9 25.0251 626.2557
4840880 39640.81 438059.8 53.77571 2891.827
5509817 42230.25 482370.2 54.63311 2984.776
6362502 27889 421240.8 9.535492 90.92561
7896100 55554.49 662317 67.39897 4542.622
9012004 42518.44 619012.4 30.66458 940.3166
10160794 38612.25 626363.4 13.97134 195.1982
11310442 28358.56 566346 -20.74135 430.2037
13255425 35758.81 688475.3 -10.50485 110.3518
15167130 35268.84 731387.1 -21.36404 456.4223
17362222 43555.69 869611.2 -10.72407 115.0056
18867730 60712.96 1070288 20.31049 412.5161
21286228 74310.76 1257695 36.33713 1320.387
22946016 45967.36 1027019 -28.51324 813.0047
25217471 35872.36 951110 -62.23596 3873.314
28310913 62150.49 1326475 -13.60578 185.1174

2.36E+08 782959.5 13180860 -143.9626 23248.3

 Unit Price Qd
Symbol $ Kgs
n X Y
1 40 10
2 63 20
3 52 30
4 17 40
5 55 50
6 55 60
7 50 75
8 90 80
9 91 90
10 110 100

10 623 555

For B2 (its for sample, assume hat)

we need:
If use Capital X & Y
n
Sum-X.Y
Sum-X
Sum-Y
Sum-X2
Step-0 (Sum-X)2

Formula:

Calculation
 Step-1

Step-2
Step-3

Step-4
Step-5

B2

For B1 (its for sample, assume hat)

We Need:
Calculated
Y-bar
B2
X-bar

Formula:

Calculation:

B1

For Error Term

Formula
Error =

Or
 Error =

Calculation

Un-hat =
Un-hat =
Un-hat =
Un-hat =
Un-hat =
Un-hat =
Un-hat =
Un-hat =
Un-hat =
Un-hat =

Standard Error

Data
Sum-X 2

n
Sum-xi2
(Error)2
n-k

Formula
 Calculation

Step -6
Step-7

Var (B1-hat)

Formula
Se(B1-hat)

Se(B1-hat)

Formula

Var (B2)

Se (B2)

F Test
Ho : Model is not good fit
H1 : Model is good fit

Fc By Formula
 R2 =

Step-17 N2
Step-18 N1

Fc [R2/(1-R2)]x[N2/N1]

Fc By ANOVA Calulation

Sourcse SS
ESS Sum-(yi-hat)
RSS (Error)2
RTSS Sum-yi2

Sum-(yi-hat)

Sum-(yi-hat)

(Error)2
From Error Term

N2
N1
From Step-17&18

Putting Values:
Sourcse SS
ESS 4483.51532425776
RSS 3938.984
RTSS Sum-yi2
 Fc

Fc

Fa,N1,N2
1%
5%
10%

Table PDF
just click to find Calculated F < F for table, 9.1059 < 11.3 at the significant level of 1
will reject Hypothesis one
Fa,N1,N2

Calculated F > F for table, 9.1059 > 5.32 at the significant level of 5
accept Hypothesis one.

Calculated F > F for table, 9.1059 > 3.46 at the significant level of 1
accept Hypothesis one.
 X-bar 62.3
Y-bar 55.5

X^2 Y^2 XY
1600 100 400.0000
3969 400 1260.0000
2704 900 1560.0000
289 1600 680.0000
3025 2500 2750.0000
3025 3600 3300.0000
2500 5625 3750.0000
8100 6400 7200.0000
8281 8100 8190.0000
12100 10000 11000.0000

45593 39225 40090

If use Capital X & Y

10
40090
623
555
45593
388129
 n (sum-X.Y) 400900

[(Sum-X)(Sum-Y)] 345765
n(Sum-X2) 455930

[(Step-1)-(Step-2)] 55135
[(Step-3)-(Sum-x)2] 67801

Step-4/Step-5 0.813188596038407

Calculated
55.5
0.813188596038407
62.3

(Y-bar)-[B2(X-bar)] 4.83835046680728

Y - (Y-hat)
 Y - [4.838350+(0.813188(X))]

10 - [ 4.838350+(0.813188( 40 ))] =
20 - [ 4.838350+(0.813188( 63 ))] =
30 - [ 4.838350+(0.813188( 52 ))] =
40 - [ 4.838350+(0.813188( 17 ))] =
50 - [ 4.838350+(0.813188( 55 ))] =
60 - [ 4.838350+(0.813188( 55 ))] =
75 - [ 4.838350+(0.813188( 50 ))] =
80 - [ 4.838350+(0.813188( 90 ))] =
90 - [ 4.838350+(0.813188( 91 ))] =
100 - [ 4.838350+(0.813188( 110 ))] =

Data
45593
10
6780.1
3938.984
8
 n(sum-xi2) 67801
(Error)2 / n-k 492.373

[(sum-X2)/Step-6] x
331.09780370496
(Step-7)

= Sq root of [var (B1-hat)]

= (331.0978)^(1/2)
= 18.1960930890386

Step-7 / Sum-xi2 0.0726203153345821

(Var (B2))1/2 0.26948156770841

0.532326031463342

N-k 8
K-1 1

9.10593391595396

df MSS
N1 Sum-(yi-hat) / N1
N2 (Error)2 / N2
N-1 MSS of ESS / MSS of RSS

= (B2)2 x (Sum-xi2)
= (0.813188)^2 x (6780.1)
= 4483.51532425776

= 3938.984

= 8
= 1

df MSS
1 4483.51532425776 / 1
8 3938.984 / 8
N-1 MSS of ESS / MSS of RSS
 = MSS of ESS / MSS of RSS
= ( 4483.51532425776 / 1) / ( 3938.984 / 8 )
= 9.10593254353459

1,8
11.3
5.32
3.46

9 < 11.3 at the significant level of 1%, Which means model is not good fit. We
will reject Hypothesis one.

9 > 5.32 at the significant level of 5%, Which means model is good fit. We will
accept Hypothesis one.

9 > 3.46 at the significant level of 10%, Which means model is good fit. We will
accept Hypothesis one.
 xi yi xi^2 yi^2
-22.3000 -45.5000 497.2900 2070.2500
0.7000 -35.5000 0.4900 1260.2500
-10.3000 -25.5000 106.0900 650.2500
-45.3000 -15.5000 2052.0900 240.2500
-7.3000 -5.5000 53.2900 30.2500
-7.3000 4.5000 53.2900 20.2500
-12.3000 19.5000 151.2900 380.2500
27.7000 24.5000 767.2900 600.2500
28.7000 34.5000 823.6900 1190.2500
47.7000 44.5000 2275.2900 1980.2500

0 0 6780.1 8422.5

For B2 (its for sample, assume hat)

we need:
If use Small xi & yi
Sum-xi.yi 5513.5
Sum-xi 2
6780.1
 B2 (Sum-xi.yi)/(Sum-xi2 )

Hence;
SRF:

Y-hat 4.838350+(0.813188(X))

Interpret:
slop = 0.813188 Indicate that if one $ Price increse then Qd will decrese by 0.813
Kgs

Intercept = 4.838350 Indicate that if Price is 0$ then Qd will be 4.838350 Kgs

 Error (Error)2
-27.365894308344 748.89217129543
-36.069232017227 1300.9894983125
-17.124157460804 293.23676874242
21.33744340054 455.28649087124
0.4362767510804 0.1903374035332
10.43627675108 108.91587242514
29.502219731272 870.38096907228
1.9746758897361 3.8993448695052
11.161487293698 124.57879860738
5.710903968968 32.614424142775

0.0000 3938.984

Coefficient of correlation

Formula

Data
Sum-xi.yi 5513.5
sum-xi2 6780.1
sum-yi2 8422.5

Calculation

Step-8 (Sum-xi2)(Sum-yi2)
Step-9 (Step-8)1/2
 r (Sum-xi.yi) / Step-9

OR,
Formula

Calculation
Step-10 n(Sum-Y2)
Step-11 (Sum-Y)2
Step-12 (Step-10)-(Step-11)
Step-13 (Step-3)-(Step-0)
Interpretation Step-14 (Step-12).(Step-13)
Step-15 (Step-14)1/2
It indicate that there is negative
relationship b/w Price and Qd, the
strength of relationship b/w Price and
Qd is .729606. [Its range is -1 to 1] r Step-4/Step-15

Coefficient of determination

Formula

Calculation
Interpretatuin Step-16 (Error)2 / (Sum-yi2)

It indicate the variation of 0.532326 in r2 1-(step-16)

the Qd that is predictable from the Direct formula (for verify answare, use direct sq of r)
Price. [Its range is 0 to 1] r2 (r)2

Significant testing

H0 : B2 = 0
H1 : B2 ≠ 0

tc = B2 / Se(B2)

tc B2 / Se(B2) 3.0176037751061
 By using Table
alpha 0.01 0.05
Calculate Manual:
talpha/2,n-k 0.0050 0.0250
8 3.355 2.306

Table PDF
just click to find Calculated t < t for table, 3.0176 < 3.355 at the significant level of 1%, Which
insignificant. It means Price has no effect on Qd. We will reject Hypothesis one
tα/2,df

Calculated t > t for table, 3.0176 > 2.306 at the significant level of 5%, Which
significant. It means Price has effect on Qd. We will accept Hypothesis one.

Calculated t > t for table, 3.0176 > 2.306 at the significant level of 10%, Which
significant. It means Price has effect on Qd. We will accept Hypothesis one.
 xi.yi
1014.6500
-24.8500
262.6500
702.1500
40.1500
-32.8500
-239.8500
678.6500
990.1500
2122.6500

5513.5
 0.813188596038

Qd will decrese by 0.813188

Qd will be 4.838350 Kgs

 57105392.25
7556.8109841387
 0.72960670997

392250
308025
84225
67801
5710539225
75568.109841387

0.72960670997

0.4676739685367

0.532326031463
sware, use direct sq of r)
0.532325951233
 0.10

0.0500
1.86

ficant level of 1%, Which is

will reject Hypothesis one.

ficant level of 5%, Which is

accept Hypothesis one.

ficant level of 10%, Which is

accept Hypothesis one.