MTH302 GDB Solution

Total Marks 5

Starting Date : Thursday, January 27, 2011

Closing Date : Friday, January 28, 2011

Construct a real world business problem and then apply simple linear regression analysis.

Question:-

Suppose that 4 randomly chosen plots were treated with various level of fertilizer in the following yield of corn:-

Fertilizer(kg/Acre) X 100 200 400 500

Production(Bushels/Acre) Y 70 70 80 100

Estimate the Linear Regression of production Y on fertilizer X.

Solution:-

X Y XY X2

100 70 7000 10000

200 70 14000 40000

400 80 32000 160000

500 100 5000 250000

å = 1200 å = 320 å =103000 å = 460000

Byx = nåXY – åXåY / nåX2 - (åX) 2

Byx = 4(103000)-((1200)(320)) / 4(460000)-(1200) 2

Byx = 0.07

ayx = y - Byx X

= ((åY/n) – ((0.07) (åX/n))

=(320/4) – (0.07)(1200/4)

= 59

y = 59 + 0.07 X is required regression equation.