Page 167 - Microsoft Word - 00 BA3 IW Prelims STUDENT.docx

Inter-relationships between variables

Question 9

Regression equation

In a forecasting model based on y = a + bx, the intercept on the y-axis is 2,580.
If the value of y is 4,100 when x is 95, calculate the value of b.

4,100 = 2,580 + b × 95

1,520 = b × 95

b = 1,520/95 = 16

Illustrations and further practice

Now read illustration 4 and try TYUs 9 to 14 from Chapter 10

161