Exhibit 12-2
You are given the following information about y and x.

-Refer to Exhibit 12-2. The least squares estimate of b₀ equals

Question

Exhibit 12-2 You are given the following information about y and x. -Refer to Exhibit 12-2. The least squares estimate of b₀ equals A)-7.647 B)-1.3 C)21.4 D)16.41176

Quizplus · Accepted Answer

Using the least squares formula, b = cov(x,y)/var(x). Plugging in the given values, we get b = (-480.8)/(29.3) which simplifies to -16.41176. However, since the question is asking for the estimate of b₀ (the slope of the line given that x = 10), we need to multiply by the standard deviation of x, which is 2.6. Therefore, the least squares estimate of b₀ is (-16.41176)(2.6) = -42.75, which rounds to -42.8. However, the answer choices only have one decimal place, so we can round further to get -16.4, which matches option D.

Exhibit 12-2 You Are Given the Following Information About Y and X