Statistics: Informed Decisions Using Data (4th Edition)

Published by Pearson
ISBN 10: 0321757270
ISBN 13: 978-0-32175-727-2

Chapter 14 - Section 14.1 - Assess Your Understanding - Applying the Concepts - Page 691: 19a

Answer

$β_0=33.2$ $β_1=-0.94$

Work Step by Step

In MINITAB, enter the Compensation values in C1 and in C2 enter the Stock Return values. Select Stats -> Regression -> Regression -> Fit Regression Model Enter C2 in "Responses" and C1 in "Continuous Predictors" The least-squares regression line ($ŷ =b_1x+b_0$) will be shown in "Regression Equation", where C2 is ŷ (Stock Return) and C1 is x (Compensation) $ŷ =- 0,94x+33,2$ That is: $b_0=33.2$ and $b_1=-0.94$ $b_0$ is the estimate for $β_0$ and $b_1$ is the estimate for $β_1$.
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