Regression through the origin. Let x denote the number of items in an order and y denote

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Regression through the origin. Let x denote  the number of items in an order and y denote time (min) necessary to process the order. Processing time may be determined by various factors other than order size. So for any particular value of x, we now regard the value of total production time as a random variable Y. Consider the following data obtained by specifying various values of x and determining total production time for each one.

a. Plot the observed (x, y) pairs on a twodimensional coordinate system. Do all points fall exactly on a line passing through (0, 0)? Do the points tend to fall close to such a line?
b. Consider the following probability model for the data. Values x1, x2, …, xn
are specified, and at each xi we will observe a value of the dependent variable Yi. Assume that the Y1,......,Yare independent and normally distributed, with Yi having mean value βxi and variance σ2. That is, rather than assume that y = βx, a linear function of x passing through the origin, we are assuming that the mean value of Y is a linear function of x and that the variance of Y is the same for any particular x value. Obtain formulas for the maximum likelihood estimates of β and σ2, and then calculate the estimates for the given data. How would you interpret the estimate of β? What value of processing time would you predict when μ = 25?

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Related Book For  book-img-for-question

Modern Mathematical Statistics With Applications

ISBN: 9783030551551

3rd Edition

Authors: Jay L. Devore, Kenneth N. Berk, Matthew A. Carlton

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