Question

21. A student wanted to know if how much money people spent per month on beer based on their income. Therefore, he asked 7 random people at Meijer their income and monthly beer spending. The following table includes the responses (2 pts):

	Income	Spent on Beer
1	17500	160
2	28000	130
3	50000	120
4	55000	125
5	65000	130
6	80000	80
7	100000	75
Mean	56500	117.1429

What is the slope of the regression equation?

Answer 1

For the given sample to calculate the slope of the regression equation, following table calculation is done as:

based on the table the mean of both is calculated as:

also the following is calculated as:

Thus the slope is calculated as: