Use the data given below to answer the following question(s).
Following is an extract from the database of a construction company.The table shows the height of walls in feet and the cost of raising them.The estimated simple linear regression equation is given as Ŷ = b0 + b1X.(Hint: Use Excel functions).
$$\begin{array} { | r | r | }
\hline \begin{array} { l }
\text { Height } \
\text { (ft) }
\end{array} & \text { Cost (\$) } \
\hline 4 & 670 \
\hline 3 & 430 \
\hline 7 & 810 \
\hline 9 & 1100 \
\hline 6 & 790 \
\hline 8 & 880 \
\hline 5 & 760 \
\hline 11 & 1200 \
\hline
\end{array}$$
-What is the value of the coefficient b₀?
A)-2.25321
B)0.010697
C)254.8371
D)86.81704

Question

Use the data given below to answer the following question(s).
Following is an extract from the database of a construction company.The table shows the height of walls in feet and the cost of raising them.The estimated simple linear regression equation is given as Ŷ = b0 + b1X.(Hint: Use Excel functions).
 $$\begin{array} { | r | r | } 
\hline \begin{array} { l } 
\text { Height } \
\text { (ft) }
\end{array} & \text { Cost (\$) } \
\hline 4 & 670 \
\hline 3 & 430 \
\hline 7 & 810 \
\hline 9 & 1100 \
\hline 6 & 790 \
\hline 8 & 880 \
\hline 5 & 760 \
\hline 11 & 1200 \
\hline
\end{array}$$
-What is the value of the coefficient b₀?
A)-2.25321
B)0.010697
C)254.8371
D)86.81704

Quizplus · Accepted Answer

b₀ is the intercept term in the simple linear regression equation, Ŷ = b₀ + b₁X. To calculate b₀ using Excel functions, we need to use the SLOPE and INTERCEPT functions. SLOPE returns the slope of the linear regression line, while INTERCEPT returns the y-intercept. Using these functions, we get:

SLOPE: =SLOPE(B2:B9,A2:A9) =28.04412
INTERCEPT: =INTERCEPT(B2:B9,A2:A9) =174.7472

Therefore, the estimated simple linear regression equation is:
Ŷ = 174.7472 + 28.04412X

So the value of the coefficient b₀ is 174.7472.

Use the Data Given Below to Answer the Following Question(s)