Anon

Simple Linear Regression 21

1

96

2

1

96

xi

i=

∑ =0.0025

x^2 =0.00004

(Here, we chose to present x^2 with the more precise five digits since the
rounded number of 0.0000 would lead to quite different results in the sub-
sequent calculations.) Putting this into equations (2.6) and (2.7), we obtain

b=

−

−

⋅ =

0 0027 0 0062 0 0159

0 0025 0 00004

1 0575

...

..

.

aa=−0 0159..1 0575⋅0 0062..=0 0093

The estimated regression equation is then

yxˆ=+0 0093..1 0575

The scatter plot of the observation pairs and the resulting least squares
regression line are shown in Figure 2.4.

FIGUre 2.3 Regression of Uncorrelated Variables x and y

X

Y

a