B.COM.

2nd YEAR/ III SEMESTER DATE: 16/12/2020

SUB: BUSINESS STATISTICS UNIT-II PART – 15
TOPIC- Solved Question
Deviations Taken from Arithmetic Means of X and Y
Example 5-1
The following table shows the number of motor registrations in a certain territory for
a term of 5 years and the sale of motor tyres by a firm in that territory for the same
period.
Year Motor Registrations No. of Tyres Sold
1 600 1,250
2 630 1,100
3 720 1,300
4 750 1,350
5 800 1,500
Find the regression equation to estimate the sale of tyres when the motor registration
is known.

Solution: Here the dependent variable is number of tyres; dependent on motor

registrations.
Hence we put motor registrations as X and sales of tyres as Y and we have to
establish the regression line of Y on X.

Calculations of values for the regression equation are given below:

X Y x=X −X y=Y −Y x
2 2
y xy
600 1,250 -100 -50 10,000 2,500 5,000
630 1,100 -70 -200 4,900 40,000 14,000
720 1,300 20 0 400 0 0
750 1,350 50 50 2,500 2,500 2,500
800 1,500 100 200 10,000 40,000 20,000
∑ X=3,500 ∑ Y =6,500 ∑ x =0 ∑ y=0 ∑ x 2=27 ,8 00 ∑ 2
y =85,000 ∑ xy =41,500

X=
∑ X = 3,500 = 700 Y=
∑ Y = 6,500 = 1,300
N 5 N 5

(i) Regression Equation of X on Y:

σx
X −X =r ¿)
σy

Regression coefficient of X on Y

r
σx
=b xy=
∑ xy = 41,500 =0.488
σy ∑ y 2 85,000
X −700=0.488(Y −13,00)
X =0.488 Y −634.4 +700
X =0.488 Y +56.6

(ii) Regression Equation of Y on X:

1|Page Prepared by SUMIT BAIN

B.COM. 2nd YEAR/ III SEMESTER DATE: 16/12/2020
SUB: BUSINESS STATISTICS UNIT-II PART – 15
TOPIC- Solved Question
Deviations Taken from Arithmetic Means of X and Y
σy
Y −Y =r ¿)
σx

Regression coefficient of Y on X

r
σy
=b yx=
∑ xy = 41,500 =1.4928
σx ∑ x 2 27,800
Y −1,300=1.4928( X−700)
Y =1.4928 X−1044.96+1,300
Y =1.4928 X+ ¿255.04

2|Page Prepared by SUMIT BAIN