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Sample problem on a Simple Linear Regression

Note: The only given information are the Units, X and Cost, Y columns. The rest were calculated and/or extracted from these.

Item # Units, X Cost, Y X*Y X^2 Php0.50


1 7 Php 0.15 Php 1.05 Php 49.00 Php0.45
2 2 Php 0.10 Php 0.20 Php 4.00 Php0.40
3 6 Php 0.13 Php 0.78 Php 36.00 Php0.35 f(x) = 0.0159302326x + 0.0506007752
4 4 Php 0.15 Php 0.60 Php 16.00 Php0.30 R² = 0.8402760031
5 14 Php 0.25 Php 3.50 Php 196.00 Php0.25

Cost
6 15 Php 0.27 Php 4.05 Php 225.00 Php0.20 Cost, Y
7 16 Php 0.24 Php 3.84 Php 256.00 Php0.15 Linear (Cost, Y )
8 12 Php 0.20 Php 2.40 Php 144.00 Php0.10
9 14 Php 0.27 Php 3.78 Php 196.00 Php0.05
10 20 Php 0.44 Php 8.80 Php 400.00 Php-
11 15 Php 0.34 Php 5.10 Php 225.00 0 5 10 15 20 25
12 7 Php 0.17 Php 1.19 Php 49.00 Unit
Totals 132 Php 2.71 Php 35.29 Php 1,796.00

n= 12 No. of observations

b= Php 0.01593 Slope


a= Php 0.05060 Intercept

r^2= 0.84 Percentage of variability in the values of y that it explained by the independent variable
r= 0.92 Correlation measures the strength and direction of relationship between 2 variables. (-1.00 to 1.00)

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