0:00
Hello.
00:01
So here first we want to, we're supposed to find the lease squares line between the mortgage rates and the number of housing starts.
00:09
So here we let the lease squares line between the mortgage rates and the number of housing starts be denoted by the number of housing starts is going to be equal to b not plus b1 times the mortgage rates.
00:22
Where b not here is the sample intercept and b1 is going to be the slope.
00:28
B1 here is the slope.
00:30
Of the regression line.
00:32
So before we find the regression line, we find the sample statistics.
00:36
We need to calculate the intercept and the slope of the regression line.
00:40
So from the given data, we have that.
00:41
Well, n is equal to 10.
00:43
We have the sum, i going from 1 to n of xi, is 82.
00:47
The sum of yi is 1540.
00:51
The sum i go from one to n of xi times yi is $12 ,543 .4.
00:57
And the sum of i going from one to n of x, squared is going to be 674 .6.
01:06
Okay, then we can go ahead and the covariance and then variance of x can then be computed.
01:11
So s subxy, we take one over n minus one, so one over 10 minus one or one over nine times this expression here.
01:20
And that's going to be equal to negative 9 .4.
01:26
And then likewise, we get that s subx squared is equal to, well, 1 over, again, 10 minus 1, and then we take the sum of x of i squared, so we take 674 .6, minus 82 squared over 10...