A Scatter Diagram Includes the Following Data Points $$\begin{array} { | c | c | c | c | c | c | } \hline x & 3 & 2 & 5 & 4 & 5 \\\hline y & 9 & 6 & 11 & 11 & 15 \\\hline\end{array}$$

question 73

Essay

A scatter diagram includes the following data points: $$\begin{array} { | c | c | c | c | c | c | } \hline x & 3 & 2 & 5 & 4 & 5 \\\hline y & 9 & 6 & 11 & 11 & 15 \\\hline\end{array}$$ Two regression models are proposed:
Model 1: y-hat = 1.85 + 2.40x.
Model 2: y-hat = 1.79 + 2.54x.
Using the least squares method, which of these regression models provides the better fit to the data? Why?

---

Definitions:

Quantum Meruit

A legal principle that determines the amount to be paid for services when no contract exists or when contractual terms are ambiguous.

Agreement

A mutual understanding or arrangement between two or more parties, detailing the terms and conditions for their particular course of action.

Consideration

Something of value exchanged between parties in a contract, which is necessary for the agreement to be legally binding.

Promised

Something assured by one party to another, often relating to an action, service, or condition that will take place in the future.