Finite Math and Applied Calculus (6th Edition)

Published by Brooks Cole
ISBN 10: 1133607705
ISBN 13: 978-1-13360-770-0

Chapter 1 - Section 1.4 - Linear Regression - Exercises - Page 104: 27a

Answer

$I=-11.85P+797.71$

Work Step by Step

Using desmos.com, we enter a table (columns labeled as $P$= price of oil and $I$=income), enter the data points, and in a new cell, enter$\quad I\sim mP+b$ The calculator returns $\left\{\begin{array}{l} m=1.37993\\ b=-24.0358\\ r=0.9436 \end{array}\right.$ where $r$ is the regression coefficient. $|r|$ is not close to 1, indicating a bad fit for the data. Rounding coefficients, the regression line is given by $I=-11.85P+797.71$
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