Given are five observations for two variables, x and y.

1. Develop a scatter diagram for these data. Try to approximate the relationship between x and y by drawing a straight line through the data.

2. What does the scatter diagram developed in part (1) indicate about the relationship between the two variables?

3. Develop the estimated regression equation by computing the values of b0 and b1 using least square method.

4. Provide an interpretation of the slope of the estimated regression equation,

5. Use the estimated regression equation to predict the value of y when x = 10.

6. Compute the coefficient of determination r2. Comment on the goodness of fit.

7. What is the value of the sample correlation coefficient?

8. Compute the mean square error.

9. Compute the standard error of the estimate.

10. Compute the estimated standard deviation of b1.

11. Develop the null and alternative hypothesis to test the linear relationship between x and y.

12. Use the t test to test the hypotheses (part 11) Use a = .05. Make a conclusion.

13. Use the F test to test the hypotheses (part 11) at .05 level of significance. Make a conclusion

14. Present the results in the analysis of variance table format.

15. Solve this problem using Excel, data analysis, regression tools and compare the result

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