A certificate of deposit with principal $150 earns 4% annual interest for 2 years. Select all the options that would earn the sa
1 answer:
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Step-by-step explanation:
Regression analysis is used to infer about the relationship between two or more variables.
The line of best fit is a straight line representing the regression equation on a scatter plot. The may pass through either some point or all points or none of the points.
<u>Method 1:</u>
Using regression analysis the line of best fit is:
Here <em>α </em>= intercept, <em>β</em> = slope and <em>e</em> = error.
The formula to compute the intercept is:
Here<em> </em> and
are mean of the <em>y</em> and <em>x</em> values respectively.
The formula to compute the slope is:
And the formula to compute the error is:
<u>Method 2:</u>
The regression line can be determined using the descriptive statistics mean, standard deviation and correlation.
The equation of the line of best fit is:
Here <em>r</em> = correlation coefficient =
and
are standard deviation of <em>x</em> and <em>y</em> respectively.