Regression and Correlation

Q1 In an experiment to measure the stiffness of a spring the length of the spring under different loads
was measure as follows
X 3 5 6 9 10 12 15 20 22 28
Load (lbs)
Y 10 12 15 18 20 22 27 30 32 34
Length (in)
Find the regression equations appropriate for predicting
The length, given the weight on the spring
The weight, given the length of the spring
Q2 A statistician wants to predict the incomes of restaurants, using two independent variables the
number of restaurant employees and restaurant floor area. He collected the following data.
Income (000) 30 22 16 7 14
Y
Floor Area (000 10 5 10 3 2
sq. feet) X1
Number of 15 8 12 7 10
employees X2
Calculate the estimated multiple linear regression equation (i.e. Y=a+b1X1+b2X2) for the above
data.
Q3 Compute the least squares regression equation of Y on X for the following data. What is the
regression coefficient and what does it mean?
X 5 6 8 10 12 13 15 16 17
Y 16 19 23 28 36 41 44 45 50

Find the values of Ў and show that ∑(Y- Ў)=0 and

Compute the standard error of estimates sy.x
Past Paper Questions
Q3 A food processing manager was least square regression to predict the total cost of Grunchola A-06
production runs. The following data apply
Production 400 150 220 500 300 100 150 150 240 350
Quality (tons)
Total Cost 200 85 115 200 140 65 70 65 125 190
(in thousand
rupees)
1. Using the method of least squares, determine the equation for the estimated regression line.
OR
Develop the estimating equation that best describes the data.
Find the best fitted line.
2. State the meaning of the slop b and intercept a of the regression line
3. Using your answer to (a) calculate the predicted value of total cost for 350 tons of
production.
Q4 A fire insurance company wants to relate the amount of damage n major residential fires to the A-05
distance between the residence and the nearest fire station. The study is conducted in a large city
and a sample of fifteen recent fires in the city is selected. The amount of damage Y and the
distance S between the fire and the nearest fire station is recorded for each fire. The data are given
below.
X (in Km) Y (Rs. In thousands)
3.4 26.6
1.8 17.8
4.6 31.3
 2.3 23.1
3.1 27.5
5.5 36.0
0.7 14.1
3.0 22.3
2.6 19.6
4.3 31.3
2.1 24.0
1.1 17.3
6.1 43.0
4.8 36.4
3.8 26.1

Find the least squares line of regression to the data. Plot the data and the fitted line. Comment on
your graph.
Q5 Find the coefficient of correlation between Economics and Physics and interpret it.
Student 1 2 3 4 5 6 7 8 9 10 11 12
Eco. 36 56 41 46 59 46 65 31 68 41 70 36
Physics 62 42 60 53 36 50 42 66 44 58 65 71

Q6 The owner of a retailing organization is interested in the relationship between price at which a S-08
commodity is offered for sale and the quantity sold. The following sample data have been
collected.
Price 25 45 30 50 35 40 65 75 70 60
Quantity 118 105 112 100 111 108 95 88 91 96
sold
1. Plot a scatter diagram for the above data.
2. Using the method of least squares, determine the equation for the estimated regression line.
3. Plot this line on the scatter diagram.
Q7 Using the data given below A-08
X 16 6 10 5 12 14
Y -4.4 8.0 2.1 8.7 0.1 -2.9
1. Plot the scatter diagram
2. Develop the estimating equation that best describes the data
3. Predict Y for S=5,6,7
Q8 A landlord is interested in seeing whether his apartment rents are typical. Thus, he has taken a A-09
random sample of 11 rents and apartments sizes of similar apartment complexes. The data follow.
Rent 230 190 450 310 218 185 340 245 125 350 280
No. of 2 1 3 2 2 2 2 1 1 2 2
Bedrooms
1. Develop and estimating equation that best describes these data.
2. Calculate co-efficient of determination
3. Predict the rent for the two bedrooms apartment.
Q9 Develop a second degree estimating equation for the data given below A-11
Year 1991 1992 1993 1994 1995
Sales 230 250 265 300 310
What do the magnitude of the coefficients a,b and c tells you about the choice of the second degree
equation of these data?
Link for Standard error of estimate
http://www.youtube.com/watch?v=r-txC-dpI-E