An article in Technometrics by S. C. Narula and J. F. Wellington (“Prediction, Linear Regression, and a Minimum Sum of R
Posted: Wed May 11, 2022 9:10 am
An article in Technometrics by S. C. Narula and J. F. Wellington
(“Prediction, Linear Regression, and a Minimum Sum of Relative
Errors,” Vol. 19, 1977) presents data on the selling price (y) and
annual taxes (x) for 24 houses. The taxes include local, school and
county taxes. The data are shown in the following table.
Sale Price/1000 Taxes/1000
25.9
4.9176
29.5
5.0208
27.9
4.5429
25.9
4.5573
29.9
5.0597
29.9
3.8910
30.9
5.8980
28.9
5.6039
35.9
5.8282
31.5
5.3003
31.0
6.2712
30.9
5.9592
30.0
5.0500
36.9
8.2464
41.9
6.6969
40.5
7.7841
43.9
9.0384
37.5
5.9894
37.9
7.5422
44.5
8.7951
37.9
6.0831
38.9 8.3607
36.9 8.1400
45.8 9.1416
(a) Calculate the least squares estimates of the slope and
intercept. 𝛽̂1 ̂𝛽2
(b) Find the mean selling price given that the taxes paid are x
= 8.1
(“Prediction, Linear Regression, and a Minimum Sum of Relative
Errors,” Vol. 19, 1977) presents data on the selling price (y) and
annual taxes (x) for 24 houses. The taxes include local, school and
county taxes. The data are shown in the following table.
Sale Price/1000 Taxes/1000
25.9
4.9176
29.5
5.0208
27.9
4.5429
25.9
4.5573
29.9
5.0597
29.9
3.8910
30.9
5.8980
28.9
5.6039
35.9
5.8282
31.5
5.3003
31.0
6.2712
30.9
5.9592
30.0
5.0500
36.9
8.2464
41.9
6.6969
40.5
7.7841
43.9
9.0384
37.5
5.9894
37.9
7.5422
44.5
8.7951
37.9
6.0831
38.9 8.3607
36.9 8.1400
45.8 9.1416
(a) Calculate the least squares estimates of the slope and
intercept. 𝛽̂1 ̂𝛽2
(b) Find the mean selling price given that the taxes paid are x
= 8.1