Assignment on Regression

Q.1 Computer problem

Data on grade point average and IQ were obtained for 12 high school students.

Grade point IQ
Average

2.1 116
2.2 129
3.1 123
2.3 121
3.4 131
2.9 134
2.9 126
2.7 122
2.1 114
1.7 109
3.2 132
3.5 140

a) Use regression analysis to estimate the effect of IQ on grade point average. Write
the equation, t-statistics and coefficient of determination R2. Is the result
consistent with your prior expectation? Please explain.

Q.2
The vice president of V.S Feeds Ltd has provided the following quarterly price – quantity
data for VF suberb, a horse feed additive. He has asked that the demand equation for this
product be estimated.

Quarter
1 2 3 4 5 6 7 8 9 10
Price(Rs.) 60 53 43 40 47 57 41 53 37 51
Quantity 83 93 100 108 97 80 105 86 110 90

a) Use the ordinary least square regression method to estimate this function
b) The firm is considering a price increase to Rs.66. Make a print and 95 percent
confidence interval estimate of sales volume if this price increase is carried out.