Question

You are given the following information about y and x.

	y	x
	Dependent	Independent
	Variable	Variable
	10	15
	4	12
	9	10
	11	7

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Refer to Exhibit 12-22. The least squares estimate of b₀ equals

Question 9 options:

	-1.3
	-5.647
	11.41176
	7.1120

Answer 1

Answer: Option (3) b0 = 11.4118 (Rounded to 4 decimal places) is the correct answer.

Justification: The linear regression equation based on the data point is of the form y_hat = b0 + b1x where b0 = the y-intercept and b1 = the slope.. It is obtained to be y_hat = 11.4118 -0.2647 x where y_hat is the predicted value of the dependent variable and x is the given value of the independent variable. So, b0 = 11.4118, and as per the given options, option (3) is the correct one.

The answer is obtained using R-software. Code and output are attached below for verification.