Sir Francis Galton, a Cousin of James Darwin, Examined the Relationship

question 7

Essay

Sir Francis Galton, a cousin of James Darwin, examined the relationship between the
height of children and their parents towards the end of the 19th century.It is from this
study that the name "regression" originated.You decide to update his findings by
collecting data from 110 college students, and estimate the following relationship: $$\widehat { \text { Studenth } } = 19.6 + 0.73 \times \text { Midparh, } R ^ { 2 } = 0.45 , S E R = 2.0$$ where Studenth is the height of students in inches, and Midparh is the average of the
parental heights.(Following Galton's methodology, both variables were adjusted so that
the average female height was equal to the average male height.)
(a)Interpret the estimated coefficients.

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Definitions:

Periodic Inventory System

An inventory valuation method where the inventory count and cost of goods sold is determined at the end of the accounting period.

Terms 4/15, N/60

A commercial credit term indicating that a 4% discount is available if paid within 15 days, with the net (full) amount due within 60 days.

Discount Lost

The expense incurred when a company fails to take advantage of the early payment discounts offered by suppliers.

Gross Method

An accounting method for recording purchases at the invoice's gross amount before any trade discounts are subtracted.