You are again given the same 5 observations that you were provided with in the Correlation problem.However,you are now asked to derive the regression line,y'= a+bX for the data below.After you have calculated the regression equation,explain to me how you could use it.

X(Independent Variable) Y(Dependent variable)

Month Advertising Expenditure (in Millions of $) Sales Revenue (in Millions of $)

July 1 3

August 2 7

September 3 5

October 4 11

November 5 14

Calculating the Standard Error of the

Estimate-S y.x . You will be using the same summation data that you used to derive

the equation of the regression line,Y'=a +bX,in Regression ( Part I )

After you have calculated the Standard Error of the Estimate,Sy.x,tell me what the

number you have obtained means.

Calculating a Prediction Interval for a

particular value of X

In this problem ,you will be using the results of Part I and Part II,which were Y'

=a+bX and S y.x ,to compute a prediction value for a particular value of X.I suggest

that you use X=1 as the particular value of X.However,you are free to use

whatever value of X that you want