00:02
Hello student here an automobile dealer wants to see if there is a relation between monthly sale and interest rate.
00:13
So here we have to use a method of least square to compute the regression equation.
00:20
So here we have given x as interest rate and here we have given y as monthly sales.
00:29
So here we have to compute regression equation.
00:33
So first we calculate the value of x bar.
00:36
So here x bar is calculated as 8 .125 and here y bar is calculated as 24 .25.
00:47
So here summation of xi minus x bar into y i minus y bar, which is equal to minus 2 .41 plus 2 .232 plus minus 32 .4 plus minus 58 .61 which is equal to minus 91 .22.
01:22
Similarly summation of xi minus x bar square.
01:27
So here summation of xi minus x bar square is equal to 1 .15 plus 0 .27 plus 5 .17 plus 7 .98, which is equal to 14 .58.
01:50
So here b1 is calculated as therefore b1 is equal to summation of xi minus x bar into y i minus y bar divided by summation of xi minus x bar bracket square, which is equal to minus 91 .22 divided by 14 .58.
02:21
Therefore value of b1 which is equal to minus 6 .25.
02:27
Now here value of b0 is calculated as so here b0 is equal to y bar minus b1 x bar...