Question 1

Paper 2, calculatorHard6 marks

A small business records its advertising expenditure, xx in hundreds of dollars, and the number of enquiries received in a week, yy for five weeks.

xx13579
yy384106
(a)

Determine the regression line of xx on yy giving its coefficients to three significant figures.

[2]
(b)

Use your regression line from part (a) to estimate the advertising expenditure when y=7y=7 Give your answer in hundreds of dollars.

[1]
(c)

A manager wishes to estimate yy when x=9x=9 She rearranges the line from part (a) and obtains y=14.4y=14.4

Determine a regression estimate you would use instead, and explain why the manager’s value should not be treated as the regression estimate for predicting yy from xx

[3]

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