The sum of 2 numbers is 46. One number is 12 more than the other. What are the numbers?
2 answers:
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<h3>Answer:</h3>
y = 1644.245(1.098x); 4,598
<h3>Explanation:</h3>A suitable graphing calculator (or spreadsheet program) can do this regression for you.
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<em>Comment on doing it by hand</em>
If you're going to do this by hand, you need to work with the logarithms of the values. Then find the line of best fit to those in the usual way.
The equation of the line is best written in point-slope form, with the point being the mean of x (which is 5.5) and the mean of y. The slope is the ratio of the covariance of x and y to the variance of x (which is 8.25). (Here, y refers to the logs of the numbers in your table.)
This equation for a line will give the logarithm of the market value, so will need to be put back into exponential form for comparison to the answer choices.