EconHM13 - Question #1 This is the Odometer Reading example...

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Question #1 This is the Odometer Reading example on slide 8 (page 66) of your course packet. Notice, however that the price column has different values, so you will get different results than the ones in the course packet. A car dealer wants to find the relationship between the odometer reading and the selling price of used cars. A random sample of 100 cars is selected, and the data recorded. The necessary data is here . Find the regression line. 1. The value of is 36009.45 . 2. The value of is 14822.82 . 3. The value of S x 2 is 43528689.66 . 4. The value of cov(x,y) is ( Note that what excel gives you in a covariance matrix is population covariance and here you need sample covariance. When you get covariance from the excel matrix, multiply it by n and divide by n-1 to get sample covariance. ): -2712511.08 . Then, 5. The value of b 1 is -0.062315477 . 6. Then the value of b 0 is 17066.76607 . Question #2
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This note was uploaded on 02/11/2010 for the course ECON 203 taught by Professor Petry during the Spring '09 term at University of Illinois, Urbana Champaign.

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EconHM13 - Question #1 This is the Odometer Reading example...

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