Question

2. We have consumption (Y) of ten people and their savings(X) data is given below. Please
estimate the regression model (?? ̂ = ? − ??? ) for the variables by using normal equations
and showing all calculation steps clearly in the Ms World file. (25p). Also interpret the
coefficients (10p) You have to use the same steps which we used in the lecture. You can find
the steps from lecture slides or recorded video. Also, you have to take in a consider the
HOMEWORK - PROJECT-PERFORMANCE EVALUATION FORM which is above.
SEND IT IN MS WORD FORMAT NOT SCREEN SHOT
X Y
12 33.6
15 42
16 44.8
10 28
12 33.6
14 39.2
18 50.4
20 56
22 61.6
24 67.2

Answer 1

	X	Y	X*Y	X2	Y2
	12	33.6	403.2	144	1128.96
	15	42	630	225	1764
	16	44.8	716.8	256	2007.04
	10	28	280	100	784
	12	33.6	403.2	144	1128.96
	14	39.2	548.8	196	1536.64
	18	50.4	907.2	324	2540.16
	20	56	1120	400	3136
	22	61.6	1355.2	484	3794.56
	24	67.2	1612.8	576	4515.84
Sum =	163	456.4	7977.2	2849	22336.16